COPYRIGHT TRADEGUIDER SYSTEMS, 2011 1 Copyright, Legal Notice and Disclaimer: Copyright 2011 By Gavin Holmes. All rights reserved This publication is protected under the US Copyright Act of 1976 and all other applicable international, federal, state and local laws, and all rights are reserved, including resale rights No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under section 107 or 108 of the US Copyright Act of 1976, without either the prior written permission of the publisher. All charts herein are provided with the permission of TradeGuider Systems International (www.tradeguider.com) Limit of Liability and Disclaimer of Warranty: The publisher has used its best efforts in preparing this book, and the information provided herein is provided for educational purposes only. The publisher makes no representation or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaims any implied warranties of merchantability or fitness for any particular purpose and shall in no event be liable for any loss of profit or any other commercial damage, including but not limited to special, incidental, consequential, or other damages. Trading Stocks, Commodities, Futures, Options on Futures, and retail off-‐exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. ISBN: 978-‐0-‐9836268-‐1-‐7 COPYRIGHT TRADEGUIDER SYSTEMS, 2011 2 TradeGuider VSA Trade Set-‐Up Sequences Introduction to VSA -‐ From the book “Trading in the Shadow of the Smart Money” By Gavin Holmes WWW.TRADINGINTHESHADOW.COM COPYRIGHT TRADEGUIDER SYSTEMS, 2011 3 and enables users to see when professional COPYRIGHT TRADEGUIDER SYSTEMS. In doing so. 2011 BACKGROUND ABOUT VOLUME SPREAD ANALYSIS AND TRADEGUIDER SYSTEMS INTERNATIONAL 4 . This method is particularly good at highlighting imbalances of supply and demand. This software is capable of analyzing any liquid market. in any time frame. price. TradeGuider was previously known as Wyckoff VSA (Volume Spread Analysis) and has been in existence for over 20 years. and spread of the price bar (often known as the range of a price bar). TradeGuider is based on a methodology called Volume Spread Analysis. The software works in either Real-‐Time (RT) or End-‐of-‐Day (EOD) modes. TradeGuider is unique due to it being driven by an artificial intelligence engine. TradeGuider is able to graphically show the essential force that moves every market. VSA is utilized in the TradeGuider software to analyze a market by observing the interrelationship between volume. if you know what you are looking for. We will be showing examples of how professional activity is clearly visible in all markets and in all timeframes. Volume Spread Analysis (VSA) is a proprietary market analysis method that was conceived by Tom Williams (Chairman of TradeGuider Systems). This is a brief explanation about TradeGuider and the underlying methodology of Volume Spread Analysis. and extracting the information it needs to indicate imbalances of supply and demand on a chart. exiting. The sophisticated Expert System is augmented by a novel set of proprietary tools. this is not a new concept. which means that it is capable of analyzing supply and demand in any liquid market. and no optimization. the range (or spread) of the bar. Instead.money is entering. eventually setting up COPYRIGHT TRADEGUIDER SYSTEMS. no setting of parameters. The indicators are displayed automatically on the chart. This empowers clients to make more intelligent. We believe if a system requires optimization to make it work. which confirm trade set-‐ups as they appear in any time frame and in any market. The extensive Expert System has an innate understanding of market dynamics combined with volume. and Tom Williams who invented VSA was himself a syndicate trader who could see that the markets were manipulated and that the key to unlocking the truth lay in the relationship between the volume. with consistent results. since the process of optimization is used to cover up a whole range of flaws in an original analysis method(s). The software combines ease of use with the best supply and demand analysis in the business. and the closing price. timely. and wrote several books on the Market. then the base methodology of that system cannot have been sound in the first place. TradeGuider is a revolutionary concept that can be used on its own or in conjunction with other trading software platforms. Tom spent many years studying the concepts of Richard Wyckoff who was a trader during the 1920 and 30’s. There is no configuration. making it an ideal choice for decision support and adding value to data vendor platforms. and informed decisions. As we said earlier. our concepts are robust and can be applied to any timeframe. or not participating in the market they are trading. 2011 5 . the "Stock Market Institute" in Phoenix, Arizona. At its core, Wyckoff's work is based on the analysis of trading ranges, and determining when stocks are in basing, markdown, distribution, or markup phases. Incorporated into these phases are the ongoing shifts between ‘weak hands’ (public ownership) and ‘composite operator ‘, now commonly known as Smart Money. Tom left Beverly Hills in the early 1980’s and went back to England. Once there, he began to investigate the possibilities of computerizing the system he had learnt as a syndicate trader. This began the evolution of Volume Spread Analysis. Together with an experienced computer programmer, Tom carefully studied many thousands of charts to recognize the obvious patterns that were left when professional or smart money was active. This methodology, although simple in concept, took many years to write and is now taught as a methodology combined with the software called TradeGuider. Volume Spread Analysis seeks to establish the cause of price movements. The ‘cause’ is quite simply the imbalance between Supply and Demand or strength and weakness in any liquid market, which is created by the activity of professional operators, or Smart Money. If you use the TradeGuider software you will see that it does an excellent job of detecting these key imbalances for you, taking the hard work out of reading the markets and enabling you to fully concentrate on your trading. The significance and importance of volume appears little understood by most non-‐professional traders. Perhaps this is because there is very little information and limited teachings available on this vital part of technical analysis. To use a COPYRIGHT TRADEGUIDER SYSTEMS, 2011 6 chart without volume is similar to buying an automobile without a gasoline tank. For the correct analysis of volume, one needs to realize that the recorded volume information contains only half of the meaning required to arrive at a correct analysis. The other half of the meaning is found in the price range or spread. Volume always indicates the amount of activity going on; the corresponding price spread shows the price movement on that volume. Many traders believe you cannot analyze volume in the FOREX markets because it is unavailable, but we will show you how TradeGuiders proprietary system can do something that most traders thought were impossible (I will discuss more about this later). Some technical indicators attempt to combine volume and price movements together. Rest assured that this approach has limitations, because at times the market will go up on high volume, but can do exactly the same thing on low volume. Prices can suddenly go sideways, or even fall off, on exactly the same volume! So, there are obviously other factors at work. Price and volume are intimately linked, and the interrelationship is a complex one, which is the reason TradeGuider was developed in the first place. The system is capable of analyzing the markets in real-‐time (or at the end of the day) while displaying any one of 400 indicators on the screen to show imbalances of supply and demand. (For more information please visit www.tradeguider.com). COPYRIGHT TRADEGUIDER SYSTEMS, 2011 7 WHAT IS A VOLUME SPREAD ANALYSIS SEQUENTIAL TRADE SET UP Volume Spread Analysis, or VSA as I shall now refer to it, was developed to analyze imbalances of supply and demand in any market and in any timeframe, however, what many traders and investors seem to miss is that the VSA methodology does not just analyze one price bar at the right edge of the chart but actually analyzes price bars in sequences. Since Tom Williams developed the system over twenty years ago, many very clever individuals have attempted to program in their own version of VSA. I have downloaded several so-‐ called VSA programs that have made claims to being the same as Toms original work, and you can bet that they are so inaccurate and incorrectly programmed that they show the true VSA method in a poor light. Tom Williams’ genius approach to programming VSA the right way was he knew when to put in restrictions so that you do not get signals appearing on every bar. It is a bit like developing a computer program to plan the perfect garden party. The program would need to ask questions of the person inputting the information to give the correct output, such as: 1. 2. 3. How many people attending the party? Is the weather forecast good or bad? Are there vegetarians that require a special menu? Etc. COPYRIGHT TRADEGUIDER SYSTEMS, 2011 8 eSignal. If rules are followed. Let me give you an example of a sequence that recently appeared in the Silver market that was picked up by the scanner in the end of day version of TradeGuider on the 25th of April. Although VSA produces a signal on an individual bar. it takes some time for Smart Money to complete the process. Every traders and investors dream is to know when a market top or bottom is being formed. through his extensive experience as a former syndicate trader using the Wyckoff method. COPYRIGHT TRADEGUIDER SYSTEMS. When accumulation or distribution occurs. then you begin to trade in harmony with the big players that are moving the market and not against them. Note that the scanner picks up a cluster of red indicators. and so we get signals in the TradeGuider software and add in studies for TradeStation.The wonderful thing about the TradeGuider system is that Tom. has answered all the questions for us. and other packages we are working on. as explained in my book “Trading in the Shadow of the Smart Money”. which is extremely significant. Metatrader4. and in this short book you have the sequences that mark the top and bottom of the market. which is why the sequences I am going to share with you appear within 25 bars of the market turn. there are sequences of signals that give a much higher probability of a market turn or a trend change. 2011 9 . a week BEFORE the 27% collapse in the commodity silver. 2011 10 . (Please Zoom In) This is the TradeGuider chart of silver showing the scanner that picked up several Signs of Weakness (SOW) during late April 2011. So what was the sequential VSA set up? Lets look… COPYRIGHT TRADEGUIDER SYSTEMS. This was showing “Smart Money” distribution at the end of April – The result was a 27% fall in silver prices in early May 2011. (Please Zoom In) This chart is courtesy of TradeGuider Systems – TradeGuider EOD chart of daily silver contract. and C marks a market top. The sequence at A. B. The VSA indicator numbers are as follows (in this little book you will find an explanation for each indicator that can be found in the TradeGuider software and VSA add in studies): • • • Point A – SOW 1 – The Buying Climax (Start of distribution) Point B – SOW 104 – Supply Coming In (also has the appearance of an Upthrust) Point C – SOW 199 – No Demand (No Demand at market top) COPYRIGHT TRADEGUIDER SYSTEMS. 2011 11 . which should close or move lower). VSA sequence is SOW 1 followed by SOW 104 and SOW 199. COPYRIGHT TRADEGUIDER SYSTEMS. No Demand needs confirmation from the next bar. It is confirmed at point D. (Note – when you see a No Demand bar DO NOT short at market. which closes lower than point C. 2011 12 . place a sell order a few ticks below the No Demand bar. (Please Zoom In) You may ask why I would be revealing this powerful information publicly. but as I explained in my book. 2011 13 . open a fund and auto trade the system and I have a team in place to do that. COPYRIGHT TRADEGUIDER SYSTEMS. Chart courtesy of Infinity AT charts – silver SI N1 intraday chart showing signs of weakness sequence 2. Well. why not just keep it to myself and trade the sequences. we are going to do exactly that. I made a promise to Tom in 2002 that I would not be selfish with the information he taught me and would always share willingly the knowledge I have gained. the VSA signals as detailed in this book.By doing so I have had the good fortune to make new friends. COPYRIGHT TRADEGUIDER SYSTEMS. including the charting software. meet some of the most interesting people in the world and be blessed with the ability to help others which is the most rewarding thing any human being can do. you will be a “Smart Money” trader. At the end of the month. 2011 14 . So you can prove to yourself that this system can help you. if you have put in the necessary effort on your part. I am giving you a chance to try it for the futures or FOREX market for a significantly discounted price. the data feed and the training for one month. You can also simply visit WWW.TRADINGINTHESHADOW. Pay only $24.com or call him directly at 312-‐373-‐6296.With the kindness of Russ Carlson and Andy Delap. Please contact my broker Josh Davidson. COPYRIGHT TRADEGUIDER SYSTEMS.com or r.com. you can get an incredible 75% savings on the Infinity Futures/Trade Guider VSA signal and data package. 2011 15 . If you are a FOREX trader we also can provide the same system in MetaTrader 4 with the consideration of FX Internals in Beverly Hills. or you can call them directly in Chicago at 312-‐373-‐6268 or 312-‐373-‐6253. His email is josh@fxinternals. I look forward to teaching you how to trade in harmony with the “Smart Money”
[email protected] Once you are set up with the charts please email Darren Holmes at
[email protected] instead of the regular price of $79. Darren will set you up with the VSA signals and training materials with my best wishes.95 for the first 30 days. You can email them at a. my brokers at Infinity Futures in Chicago. In the subject line write “TradeGuider VSA Offer”.com or you can call him directly at 310-‐606-‐2055.delap@infinityfutures. 2011 16 .THE TWENTY VSA SEQUENCES FOR LONG AND SHORT TRADE SET UPS SHORT TRADE SET UPS: SOW -‐ SIGNS OF WEAKNESS Sequence 1 – (example shown in silver) SOW 1 The Buying Climax (Start of distribution) SOW 104 Supply Coming In (also has the appearance of an Upthrust) SOW 199 No Demand (No Demand at market top) Sequence 2 – (example silver intraday Infinity AT chart) SOW 26 Supply Coming In SOW 7 Supply Coming In SOW 146 No Demand Sequence 3 SOW 90 Possible Hidden Selling SOW 26 Supply Coming In SOW 198 No Demand Sequence 4 SOW 134 No Demand SOW 10 Upthrust SOW 134 No Demand Sequence 5 SOW 5 End of a Rising Market SOW 2 Upthrust SOW 6 No Demand COPYRIGHT TRADEGUIDER SYSTEMS. Sequence 6 SOW 89 Potential Climactic Action SOW 86 Failed Test SOW 96 Upthrust After Weakness Sequence 7 SOW 97 Reversal After Effort To Rise SOW 10 Upthrust SOW 106 No Demand Sequence 8 SOW 108 Top Reversal SOW 10 Upthrust SOW 193 No Demand Sequence 9 SOW 159 Supply Overcoming Demand SOW 101 Upthrust SOW 127 No demand Sequence 10 SOW 21 End of a Rising Market SOW 28 No Demand SOW 34 No demand COPYRIGHT TRADEGUIDER SYSTEMS. 2011 17 . LONG TRADE SET UPS: SOS -‐ SIGNS OF STRENGTH Sequence 1 SOS 147 Demand Overcoming Supply SOS 134 No Supply / Test SOS 198 No Supply Sequence 2 SOS 137 Potential Climactic Action SOS 135 Stopping Volume SOS 96 Test Sequence 3 SOS 78 Bottom Reversal SOS 116 Test SOS 86 No Supply / Test Sequence 4 SOS 74 Potential Climactic Action / Shakeout SOS 146 Test SOS 199 No Supply Sequence 5 SOS 57 Two Bar Reversal SOS 134 Test / No Supply SOS 198 No Supply Sequence 6 SOS 45 Shakeout SOS 49 Test of Supply After Shakeout SOS 199 No Supply COPYRIGHT TRADEGUIDER SYSTEMS. 2011 18 . Sequence 7 SOS 36 Bag Holding SOS 29 Test of a Breakout SOS 30 Test in a Rising Market Sequence 8 SOS 122 Potential Professional Buying SOS 11 Basic Test SOS 81 No Supply / Test Sequence 9 SOS 83 Potential Selling Climax SOS 134 No Supply / Test SOS 147 Demand Overcoming Supply Sequence 10 SOS 99 Reversal Over Two Bars SOS 198 No Supply SOS 199 No Supply COPYRIGHT TRADEGUIDER SYSTEMS. 2011 19 . 2011 20 . GLOSSARY SIGNS OF WEAKNESS PART 1: COPYRIGHT TRADEGUIDER SYSTEMS. This will require them to support the market in the short term. 2011 21 . If you see low volume down bars or high volume down bars closing in the middle the market is not yet ready to fall. You would expect to see upthrusts. Background: There should be an up move behind you. In order to sell the professionals have to unload into a rising market by selling to the herd. Future: The next bar should be down to confirm this indicator.SOW 1: POTENTIAL BUYING CLIMAX NOTE: None. Look to the next few bars for confirmation. Remember the professionals may have further sell orders to execute. no demand up bars and further up bars on high volume closing in the middle to confirm the weakness. High volume up bars on a wide spread closing up and through the old highs represent absorption volume and strength. The professional groups will then sell into this frenzy of buying. If they sold on down bars prices would fall too rapidly against them. Bar Description: A high to ultra high volume up bar closing in the middle shows supply overcoming demand and indicates professional selling. Eventually the herd panic for fear of missing out on higher prices and buy on the good news. This bar should be into new fresh high ground. COPYRIGHT TRADEGUIDER SYSTEMS. COPYRIGHT TRADEGUIDER SYSTEMS.SOW 2: UPTHRUST NOTE: None. no demand adds to the weakness. Further SOW e. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. The bar resembles a telegraph pole.g. The upthrust is a moneymaking maneuver by the market makers to catch stops of those who are short and trap the unwary into buying. Background: Be very careful here. Bar Description: The bar is marked up but falls off rapidly to close on or near its low normally with an average to wide price spread. Prices are marked up at the open often on good news. 2011 22 . This shows lack of selling pressure. Future: Following a true upthrust expect lower prices. High volume shows selling by the professionals while low volume shows their lack of interest in the upside. True upthrusts appear when you have WEAKNESS in the background. Be wary of a test with SOW in the background as it may well fail. It is likely to be tested or may be a false upthrust. If there is strength in the background be very cautious. This would need to be tested. Be cautious if following the upthrust you see a down bar with a narrow spread with volume lower than the two previous bars. This would be characterized by high volume up bars closing in the middle and no demand up bars. Bar Description: The bar should be a narrow spread up bar with high volume and closing off the highs and be into fresh new high ground. Even traders that are already long will add to their positions. This type of action is bearish. Any up move back into the area of supply on low volume with narrow spreads or with upthrusts is a further SOW. The news will be 'good'. Background: This is ONLY VALID if you have ALREADY SEEN A SUBSTANTIAL UP MOVE having taken place. Do you have an old top to the left? If so this could be absorption volume. Be cautious if you now see a down bar with a narrow spread with volume lower than the two previous bars. This becomes a sign of strength. COPYRIGHT TRADEGUIDER SYSTEMS. But remember this weakness will not suddenly disappear. For the price spread to be narrow they must have been willing to supply the market without marking prices up. This shows lack of selling pressure. Future: Prices should now decline.SOW 5: END OF RISING MARKET NOTE: None. Here the professionals are willing to absorb the supply of locked in traders who had bought at higher prices. After a period of rising prices you are vulnerable to one or more professional groups taking profits. If the market makers were bullish they would have marked prices up on this buying. We know that there has been buying by the high volume. There should be no old trading ranges at or near this level (see below). When not appearing in genuinely new high ground this can represent absorption volume. 2011 23 . They can all be sucked into a bull market at the top. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. This would need to be tested. Also as markets rise a point will be reached when those traders who have missed out on the up move will rush in to buy before losing out on this fantastic bull run. as there is little immediate supply. This shows the professional money is not interested in higher prices at this time. Background: Pay particular attention to the background. Bar Description: An up bar on a narrow spread closing in the middle with low volume. or volume lower than the last two bars. COPYRIGHT TRADEGUIDER SYSTEMS. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort).SOW 6: NO DEMAND NOTE: None. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance. If the price spread is greater than narrow this can still show weakness. 2011 24 . It can be a down bar if the high is higher than the previous bar. If there are other SOW in the background expect lower prices. Future: The next bar should be down to confirm this indicator. Further SOW such as upthrusts will confirm the weakness. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. The professionals have noticed this weakness and are not interested any longer in the up move. This shows lack of selling pressure. This would need to be tested. If there is weakness in the background this SOW becomes more important. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. or is there an old top to the left? This could be absorption volume. which is up. Subsequent no demand up bars or upthrusts confirm the weakness With weakness in the background this indicator carries more weight. However make sure that it is not a false breakout. If this is the start of a distribution phase expect whipsawing whilst a cause is built to the downside. Sometimes this can be a breakout through an old top. If the market is still strong it should follow the path of least resistance. A successful test would then be bullish. which is a sign of strength.SOW 7: SUPPLY COMING IN NOTE: None. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. Future: If the next bar is down this confirms the weakness. If there is strength in the near background or a breakout this supply may be tested so look for low volume down bars closing in the middle or high. Background: Look carefully to the background. These would need to be tested. COPYRIGHT TRADEGUIDER SYSTEMS. Also watch for down bars closing off the lows with high volume that show potential strength. Also high volume up bars on narrow spreads show further selling. If volume is ultra high this could be climactic action. Remember the market is an unfolding story bar by bar. or for shakeouts. which is a SOW. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). 2011 25 . Bar Description: This is an up bar closing off the high showing an increase in volume suggesting supply has entered the market. Look for other SOW to confirm this indicator such as upthrusts and no demand. You need to adjust your analysis accordingly. This would need to be tested. The upthrust is a moneymaking maneuver by the market makers to catch stops of those who are short and trap the unwary into buying. Also if the bar closes down this is normally a sign of strength but the high being higher than the previous bar's high makes it a weak bar (hence the term hidden upthrust). no demand adds to the weakness. Bar Description: The bar is marked up but falls off rapidly to close on or near its low. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. Future: Following a true upthrust expect lower prices. COPYRIGHT TRADEGUIDER SYSTEMS. True upthrusts appear when you have WEAKNESS in the background.SOW 8: UPTHRUST NOTE: None. It is likely to be tested or may be a false upthrust. if the market has already fallen for some time this could be the start of a shakeout especially if the news is bad. If there is strength in the background be very cautious. This shows lack of selling pressure. 2011 26 . Prices are marked up at the open often on good news. High volume shows selling by the professionals while low volume shows their lack of interest in the upside. This would be characterized by high volume up bars closing in the middle and no demand up bars. Be cautious if following the upthrust you see a down bar with a narrow spread with volume lower than the two previous bars. Be wary of a test with SOW in the background as it may well fail. normally with an average to wide price spread. Further SOW e. The bar resembles a telegraph pole. However. Background: Be very careful here.g. no demand adds to the weakness. Further SOW e.SOW 9: UPTHRUST NOTE: None. The upthrust is a moneymaking maneuver by the market makers to catch stops of those who are short and trap the unwary into buying.g. High volume shows selling by the professionals while low volume shows their lack of interest in the upside. 2011 27 . The bar resembles a telegraph pole. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. It is likely to be tested or may be a false upthrust. True upthrusts appear when you have WEAKNESS in the background. Be wary of a test with SOW in the background as it may well fail. This indicator appears after no demand in the recent background. COPYRIGHT TRADEGUIDER SYSTEMS. Bar Description: The bar is marked up but falls off rapidly to close on or near its low normally with an average to wide price spread. Prices are marked up at the open often on good news. If there is strength in the background be very cautious. Future: Following a true upthrust expect lower prices. This would need to be tested. Background: Be very careful here. This would be characterized by high volume up bars closing in the middle and no demand up bars. This shows lack of selling pressure. Be cautious if following the upthrust you see a down bar with a narrow spread with volume lower than the two previous bars. Bar Description: The bar is marked up but falls off rapidly to close on or near its low normally with an average to wide price spread. Be wary of a test with SOW in the background as it may well fail.g. Prices are marked up at the open often on good news.SOW 10: UPTHRUST NOTE: This indicator needs the next bar for confirmation even in live bar mode. True upthrusts appear when you have WEAKNESS in the background. Background: Be very careful here. The bar resembles a telegraph pole. 2011 28 . It is likely to be tested or may be a false upthrust. Also if the bar closes down this is normally a sign of strength but the high being higher than the previous bar's high makes it a weak bar (hence the term hidden upthrust). Future: Following a true upthrust expect lower prices. Further SOW e. High volume shows selling by the professionals while low volume shows their lack of interest in the upside. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. The upthrust is a moneymaking maneuver by the market makers to catch stops of those who are short and trap the unwary into buying. no demand adds to the weakness. If there is strength in the background be very cautious. This would need to be tested. This would be characterised by high volume up bars closing in the middle and no demand up bars. Be cautious if following the upthrust you see a down bar with a narrow spread with volume lower than the two previous bars. This indicator appears after no demand in the recent background. This shows lack of selling pressure. COPYRIGHT TRADEGUIDER SYSTEMS. High volume shows selling by the professionals while low volume shows their lack of interest in the upside. Further SOW e. Bar Description: The bar is marked up but falls off rapidly to close on or near its low normally with an average to wide price spread. The upthrust is a moneymaking maneuver by the market makers to catch stops of those who are short and trap the unwary into buying. The bar resembles a telegraph pole. This shows lack of selling pressure. Be wary of a test with SOW in the background as it may well fail. Prices are marked up at the open often on good news. If there is strength in the background be very cautious. Background: Be very careful here. no demand adds to the weakness. It is likely to be tested or may be a false upthrust. COPYRIGHT TRADEGUIDER SYSTEMS. Be cautious if following the upthrust you see a down bar with a narrow spread with volume lower than the two previous bars. 2011 29 .g. True upthrusts appear when you have WEAKNESS in the background. This would need to be tested. This would be characterized by high volume up bars closing in the middle and no demand up bars.SOW 11: UPTHRUST NOTE: None. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. Future: Following a true upthrust expect lower prices. SOW 14: END OF RISING MARKET NOTE: None. If the market makers were bullish they would have marked prices up on this buying. We know that there has been buying by the high volume. There should be no old trading ranges at or near this level (see below). But remember this weakness will not suddenly disappear. 2011 30 . This becomes a sign of strength. Background: This is ONLY VALID if you have ALREADY SEEN A SUBSTANTIAL UP MOVE having taken place. Bar Description: The bar should be a narrow spread up bar with high volume and closing off the highs and be into fresh new high ground. For the price spread to be narrow they must have been willing to supply the market without marking prices up. The news will be 'good'. When not appearing in genuinely new high ground this can represent absorption volume. Even traders that are already long will add to their positions. Here the professionals are willing to absorb the supply of locked in traders who had bought at higher prices. Any up move back into the area of supply on low volume with narrow spreads or with upthrusts is a further SOW. This would need to be tested. COPYRIGHT TRADEGUIDER SYSTEMS. Also as markets rise a point will be reached when those traders who have missed out on the up move will rush in to buy before losing out on this fantastic bull run. Future: Prices should now decline. After a period of rising prices you are vulnerable to one or more professional groups taking profits. Be cautious if you now see a down bar with a narrow spread with volume lower than the two previous bars. They can all be sucked into a bull market at the top. This shows lack of selling pressure. Do you have an old top to the left? If so this could be absorption volume. This type of action is bearish. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. High volume shows selling by the professionals while low volume shows their lack of interest in the upside. This would be characterised by high volume up bars closing in the middle and no demand up bars. Be cautious if following the upthrust you see a down bar with a narrow spread with volume lower than the two previous bars. Bar Description: The bar is marked up but falls off rapidly to close on or near its low normally with an average to wide price spread. Further SOW e.g. 2011 31 . This would need to be tested.SOW 15: UPTHRUST NOTE: None. Background: Be very careful here. True upthrusts appear when you have WEAKNESS in the background. Prices are marked up at the open often on good news. COPYRIGHT TRADEGUIDER SYSTEMS. Future: Following a true upthrust expect lower prices. It is likely to be tested or may be a false upthrust. Be wary of a test with SOW in the background as it may well fail. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. If there is strength in the background be very cautious. The upthrust is a moneymaking maneuver by the market makers to catch stops of those who are short and trap the unwary into buying. This shows lack of selling pressure. The bar resembles a telegraph pole. no demand adds to the weakness. SOW 21: END OF RISING MARKET NOTE: None. Future: Prices should now decline. Even traders that are already long will add to their positions. For the price spread to be narrow they must have been willing to supply the market without marking prices up. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. After a period of rising prices you are vulnerable to one or more professional groups taking profits. If the market makers were bullish they would have marked prices up on this buying. Do you have an old top to the left? If so this could be absorption volume. The news will be 'good'. Background: This is ONLY VALID if you have ALREADY SEEN A SUBSTANTIAL UP MOVE having taken place. This becomes a sign of strength. There should be no old trading ranges at or near this level (see below). This type of action is bearish. This shows lack of selling pressure. Here the professionals are willing to absorb the supply of locked in traders who had bought at higher prices. COPYRIGHT TRADEGUIDER SYSTEMS. Also as markets rise a point will be reached when those traders who have missed out on the up move will rush in to buy before losing out on this fantastic bull run. 2011 32 . We know that there has been buying by the high volume. This would need to be tested. They can all be sucked into a bull market at the top. But remember this weakness will not suddenly disappear. Be cautious if you now see a down bar with a narrow spread with volume lower than the two previous bars. Any up move back into the area of supply on low volume with narrow spreads or with upthrusts is a further SOW. Bar Description: The bar should be a narrow spread up bar with high volume and closing off the highs and be into fresh new high ground. When not appearing in genuinely new high ground this can represent absorption volume. Any up move back into the area of supply on low volume with narrow spreads or with upthrusts is a further SOW. This shows lack of selling pressure. They can all be sucked into a bull market at the top. We know that there has been buying by the high volume. The news will be 'good'. When not appearing in genuinely new high ground this can represent absorption volume. This becomes a sign of strength. Even traders that are already long will add to their positions. Be cautious if you now see a down bar with a narrow spread with volume lower than the two previous bars. This type of action is bearish. If the market makers were bullish they would have marked prices up on this buying. 2011 33 . Here the professionals are willing to absorb the supply of locked in traders who had bought at higher prices. Bar Description: The bar should be a narrow spread up bar with high volume and closing off the highs and be into fresh new high ground. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. After a period of rising prices you are vulnerable to one or more professional groups taking profits. This would need to be tested. Do you have an old top to the left? If so this could be absorption volume. There should be no old trading ranges at or near this level (see below).SOW 22: END OF RISING MARKET NOTE: None. Future: Prices should now decline. COPYRIGHT TRADEGUIDER SYSTEMS. For the price spread to be narrow they must have been willing to supply the market without marking prices up. Also as markets rise a point will be reached when those traders who have missed out on the up move will rush in to buy before losing out on this fantastic bull run. Background: This is ONLY VALID if you have ALREADY SEEN A SUBSTANTIAL UP MOVE having taken place. But remember this weakness will not suddenly disappear. After a period of rising prices you are vulnerable to one or more professional groups taking profits. Even traders that are already long will add to their positions. If the market makers were bullish they would have marked prices up on this buying. Future: Prices should now decline. Background: This is ONLY VALID if you have ALREADY SEEN A SUBSTANTIAL UP MOVE having taken place. This would need to be tested. This type of action is bearish. We know that there has been buying by the high volume. Do you have an old top to the left? If so this could be absorption volume. Bar Description: The bar should be a narrow spread up bar with high volume and closing off the highs and be into fresh new high ground. Be cautious if you now see a down bar with a narrow spread with volume lower than the two previous bars. This shows lack of selling pressure. There should be no old trading ranges at or near this level (see below). Any up move back into the area of supply on low volume with narrow spreads or with upthrusts is a further SOW. 2011 34 . COPYRIGHT TRADEGUIDER SYSTEMS. Also as markets rise a point will be reached when those traders who have missed out on the up move will rush in to buy before losing out on this fantastic bull run. This becomes a sign of strength. The news will be 'good'. But remember this weakness will not suddenly disappear. They can all be sucked into a bull market at the top. Here the professionals are willing to absorb the supply of locked in traders who had bought at higher prices. When not appearing in genuinely new high ground this can represent absorption volume.SOW 23: END OF RISING MARKET NOTE: None. For the price spread to be narrow they must have been willing to supply the market without marking prices up. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. Be cautious if you now see a down bar with a narrow spread with volume lower than the two previous bars. This would need to be tested. But remember this weakness will not suddenly disappear. This shows lack of selling pressure. If the market makers were bullish they would have marked prices up on this buying. Even traders that are already long will add to their positions. When not appearing in genuinely new high ground this can represent absorption volume. We know that there has been buying by the high volume. Future: Prices should now decline. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. Background: This is ONLY VALID if you have ALREADY SEEN A SUBSTANTIAL UP MOVE having taken place. After a period of rising prices you are vulnerable to one or more professional groups taking profits. 2011 35 . Also as markets rise a point will be reached when those traders who have missed out on the up move will rush in to buy before losing out on this fantastic bull run. They can all be sucked into a bull market at the top. Here the professionals are willing to absorb the supply of locked in traders who had bought at higher prices. This type of action is bearish. There should be no old trading ranges at or near this level (see below). Bar Description: The bar should be a narrow spread up bar with high volume and closing off the highs and be into fresh new high ground. Do you have an old top to the left? If so this could be absorption volume. For the price spread to be narrow they must have been willing to supply the market without marking prices up. The news will be 'good'. COPYRIGHT TRADEGUIDER SYSTEMS. Any up move back into the area of supply on low volume with narrow spreads or with upthrusts is a further SOW. This becomes a sign of strength.SOW 24: END OF RISING MARKET NOTE: None. or for shakeouts. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). No demand up bars and upthrusts will add to the negative picture. Bar Description: The bar should be an up bar on high volume and closing off the highs. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. which is a sign of strength.SOW 25: SELLING PRESSURE NOTE: None. Sometimes this can be a breakout through an old top. Also high volume up bars on narrow spreads show further selling. A successful test would then be bullish. Also watch for down bars closing off the lows with high volume that show potential strength. These would need to be tested. With weakness in the background this indicator carries more weight. COPYRIGHT TRADEGUIDER SYSTEMS. Background: Look carefully to the background. If the market is still strong it should follow the path of least resistance. which is a SOW. You need to adjust your analysis accordingly. If there is strength in the near background or a breakout this supply may be tested so look for low volume down bars closing in the middle or high. This shows supply has entered the market. Remember the market is an unfolding story bar by bar. If volume is ultra high this adds to the weakness. However make sure that it is not a false breakout. which is up. Is there an old top to the left as this could be absorption volume? Future: If the next bar is down closing near its lows this confirms the weakness. Subsequent no demand up bars or upthrusts confirm the weakness. 2011 36 . which is up. Is there an old top to the left as this could be absorption volume? Future: If the next bar is down closing near its lows this confirms the weakness. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. which is a sign of strength.SOW 26: SUPPLY COMING IN NOTE: None. Also watch for down bars closing off the lows with high volume that show potential strength. 2011 37 . Subsequent no demand up bars or upthrusts confirm the weakness. Remember the market is an unfolding story bar by bar. Sometimes this can be a breakout through an old top. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). COPYRIGHT TRADEGUIDER SYSTEMS. Also high volume up bars on narrow spreads show further selling. However make sure that it is not a false breakout. which is a SOW. With weakness in the background this indicator carries more weight. Background: Look carefully to the background. A successful test would then be bullish. Bar Description: This is an up bar showing an increase in volume suggesting supply has entered the market. If volume is ultra high this could be climactic action. You need to adjust your analysis accordingly. If the market is still strong it should follow the path of least resistance. These would need to be tested. or for shakeouts. If there is strength in the near background or a breakout this supply may be tested so look for low volume down bars closing in the middle or high. No demand up bars and upthrusts will add to the negative picture. A successful test would then be bullish. These would need to be tested.SOW 27: SUPPLY COMING IN NOTE: None. Also watch for down bars closing off the lows with high volume that show potential strength. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. With weakness in the background this indicator carries more weight. No demand up bars and upthrusts will add to the negative picture. Also high volume up bars on narrow spreads show further selling. COPYRIGHT TRADEGUIDER SYSTEMS. Bar Description: This is an up bar showing an increase in volume suggesting supply has entered the market. If volume is ultra high this could be climactic action. Remember the market is an unfolding story bar by bar. 2011 38 . which is a sign of strength. However make sure that it is not a false breakout. Is there an old top to the left as this could be absorption volume? Future: If the next bar is down closing near its lows this confirms the weakness. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). which is a SOW. If the market is still strong it should follow the path of least resistance that is up. or for shakeouts. Subsequent no demand up bars or upthrusts confirm the weakness. You need to adjust your analysis accordingly. Sometimes this can be a breakout through an old top. If there is strength in the near background or a breakout this supply may be tested so look for low volume down bars closing in the middle or high. Background: Look carefully to the background. This shows lack of selling pressure. Further SOW such as upthrusts will confirm the weakness. If there is weakness in the background this SOW becomes more important. or volume lower than the last two bars. With strength in the background. If the price spread is greater than narrow this can still show weakness. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. Background: Pay particular attention to the background. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. Bar Description: An up bar on a narrow spread closing in the middle with low volume. Future: The next bar should be down to confirm this indicator. If there are other SOW in the background expect lower prices. COPYRIGHT TRADEGUIDER SYSTEMS. This would need to be tested. This shows the professional money is not interested in higher prices at this time. It can be a down bar if the high is higher than the previous bar. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. 2011 39 . The professionals have noticed this weakness and are not interested any longer in the up move. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars.SOW 28: NO DEMAND NOTE: None. expect testing or an up bar on increased volume to push through this SOW (effort). Be wary of a test with SOW in the background as it may well fail. The upthrust is a moneymaking maneuver by the market makers to catch stops of those who are short and trap the unwary into buying. Future: Following a true upthrust expect lower prices. True upthrusts appear when you have WEAKNESS in the background. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. This shows lack of selling pressure.g. 2011 40 . This would be characterized by high volume up bars closing in the middle and no demand up bars. Background: Be very careful here. Be cautious if following the upthrust you see a down bar with a narrow spread with volume lower than the two previous bars. Further SOW e. It is likely to be tested or may be a false upthrust. This would need to be tested. The bar resembles a telegraph pole. no demand adds to the weakness. Bar Description: The bar is marked up but falls off rapidly to close on or near its low normally with an average to wide price spread. If there is strength in the background be very cautious.SOW 29: UPTHRUST NOTE: None. Prices are marked up at the open often on good news. High volume shows selling by the professionals while low volume shows their lack of interest in the upside. Also if the bar closes down this is normally a sign of strength but the high being higher than the previous bar's high makes it a weak bar (hence the term hidden upthrust). COPYRIGHT TRADEGUIDER SYSTEMS. The news will be 'good'. Also it should be into new fresh high ground. Any up move back into the area of supply on low volume with narrow spreads or with upthrusts is a further SOW. 2011 41 . This would need to be tested. There should be no old trading ranges at or near this level (see below). Background: This is ONLY VALID if you have ALREADY SEEN A SUBSTANTIAL UP MOVE having taken place. They can all be sucked into a bull market at the top. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. But remember this weakness will not suddenly disappear. If the market makers were bullish they would have marked prices up on this buying. Bar Description: The bar should be a narrow spread up bar with high volume and closing off the highs. This becomes a sign of strength. Also as markets rise a point will be reached when those traders who have missed out on the up move will rush in to buy before losing out on this fantastic bull run. This type of action is bearish. After a period of rising prices you are vulnerable to one or more professional groups taking profits. Do you have an old top to the left? If so this could be absorption volume. Future: Prices should now decline. COPYRIGHT TRADEGUIDER SYSTEMS. Here the professionals are willing to absorb the supply of locked in traders who had bought at higher prices. We know that there has been buying by the high volume. Even traders that are already long will add to their positions. When not appearing in genuinely new high ground this can represent absorption volume. Be cautious if you now see a down bar with a narrow spread with volume lower than the two previous bars. This shows lack of selling pressure.SOW 30: END OF RISING MARKET NOTE: None. For the price spread to be narrow they must have been willing to supply the market without marking prices up. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. If there are other SOW in the background expect lower prices.SOW 32: NO DEMAND NOTE: None. This shows the professional money is not interested in higher prices at this time. This shows lack of selling pressure. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). 2011 42 . The professionals have noticed this weakness and are not interested any longer in the up move. It can be a down bar if the high is higher than the previous bar. Background: Pay particular attention to the background. Future: The next bar should be down to confirm this indicator. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. This would need to be tested. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. If the price spread is greater than narrow this can still show weakness. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. COPYRIGHT TRADEGUIDER SYSTEMS. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. Further SOW such as upthrusts will confirm the weakness. If there is weakness in the background this SOW becomes more important. No demand up bars and upthrusts will add to the negative picture. COPYRIGHT TRADEGUIDER SYSTEMS. Also watch for down bars closing off the lows with high volume which show potential strength. Subsequent no demand up bars or upthrusts confirm the weakness. Background: Look carefully to the background. With weakness in the background this indicator carries more weight. If the market is still strong it should follow the path of least resistance. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. If volume is ultra high this could be climactic action. make sure that it is not a false breakout which is a SOW. or for shakeouts.SOW 33: SUPPLY COMING IN NOTE: None. Is there an old top to the left as this could be absorption volume. If there is strength in the near background or a breakout this supply may be tested so look for low volume down bars closing in the middle or high. You need to adjust your analysis accordingly. Sometimes this can be a breakout through an old top which is a sign of strength. which is up. These would need to be tested. Also high volume up bars on narrow spreads show further selling. Future: If the next bar is down closing near its lows this confirms the weakness. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). Bar Description: This is an up bar showing an increase in volume suggesting supply has entered the market. 2011 43 . However. A successful test would then be bullish. Remember the market is an unfolding story bar by bar. If the price spread is greater than narrow this can still show weakness.SOW 34: NO DEMAND NOTE: None. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). If there is weakness in the background this SOW becomes more important. This shows lack of selling pressure. Future: The next bar should be down to confirm this indicator. COPYRIGHT TRADEGUIDER SYSTEMS. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. This would need to be tested. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. Further SOW such as upthrusts will confirm the weakness. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. If there are other SOW in the background expect lower prices. It can be a down bar if the high is higher than the previous bar. 2011 44 . This shows the professional money is not interested in higher prices at this time. Background: Pay particular attention to the background. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. The professionals have noticed this weakness and are not interested any longer in the up move. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. If the price spread is greater than narrow this can still show weakness. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. The professionals have noticed this weakness and are not interested any longer in the up move. It can be a down bar if the high is higher than the previous bar. COPYRIGHT TRADEGUIDER SYSTEMS. If there is weakness in the background this SOW becomes more important. Further SOW such as upthrusts will confirm the weakness. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. 2011 45 . Background: Pay particular attention to the background. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. Future: The next bar should be down to confirm this indicator. This shows lack of selling pressure. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. This shows the professional money is not interested in higher prices at this time. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). This would need to be tested.SOW 36: NO DEMAND NOTE: None. If there are other SOW in the background expect lower prices. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. SOW 37: NO DEMAND NOTE: None. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. If the price spread is greater than narrow this can still show weakness. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). The professionals have noticed this weakness and are not interested any longer in the up move. Future: The next bar should be down to confirm this indicator. If there are other SOW in the background expect lower prices. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. This would need to be tested. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. If there is weakness in the background this SOW becomes more important. Further SOW such as upthrusts will confirm the weakness. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. 2011 46 . This shows lack of selling pressure. This shows the professional money is not interested in higher prices at this time. COPYRIGHT TRADEGUIDER SYSTEMS. It can be a down bar if the high is higher than the previous bar. Background: Pay particular attention to the background. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. If there is weakness in the background this SOW becomes more important. It can be a down bar if the high is higher than the previous bar. Future: The next bar should be down to confirm this indicator. This shows the professional money is not interested in higher prices at this time. If there are other SOW in the background expect lower prices. Background: Pay particular attention to the background. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. If the price spread is greater than narrow this can still show weakness. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength.SOW 38: NO DEMAND NOTE: None. Further SOW such as upthrusts will confirm the weakness. The professionals have noticed this weakness and are not interested any longer in the up move. COPYRIGHT TRADEGUIDER SYSTEMS. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). This would need to be tested. 2011 47 . If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. This shows lack of selling pressure. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. Future: Following a true upthrust expect lower prices. High volume shows selling and low volume indicates lack of interest at the higher levels by the professionals. If there is strength in the background be very cautious. Background: Be very careful here. True upthrusts appear when you have WEAKNESS in the background. The bar resembles a telegraph pole. Closing as a down bar is normally a sign of strength but the high being higher than the previous bar's high makes it a weak bar (hence the term hidden upthrust). The upthrust is a moneymaking maneuver by the market makers to catch stops of those who are short and trap the unwary into buying. However if the market has already fallen for some time this could be the start of a shakeout especially if the news is bad. Be wary of a test with SOW in the background as it may well fail. Bar Description: The bar is marked up but falls off rapidly to close on or near its low with an average to wide price spread. This would need to be tested. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. This would be characterized by high volume up bars closing in the middle and no demand up bars.g. High volume shows selling by the professionals while low volume shows their lack of interest in the upside. Further SOW e. Be cautious if following the upthrust you see a down bar with a narrow spread with volume lower than the two previous bars. Prices are marked up at the open often on good news.SOW 40: HIDDEN UPTHRUST NOTE: None. This shows lack of selling pressure. no demand adds to the weakness. It is likely to be tested or may be a false upthrust. 2011 48 . COPYRIGHT TRADEGUIDER SYSTEMS. Bar Description: This is an up bar closing off its high showing an increase in volume suggesting supply has entered the market. Prices are marked up at the open often on good news and the professionals use this to sell. High volume shows selling and low volume indicates lack of interest at the higher levels by the professionals. You need to adjust your analysis accordingly. This would be characterized by high volume up bars closing in the middle and no demand up bars. Background: Are you currently in an up-‐trend or a down-‐trend? Have you seen other signs of weakness prior to this indicator? Be very careful here. No demand up bars and upthrusts will add to the negative picture. A successful test would then be bullish. It is likely to be tested or may be a false upthrust. Often these bars appear as an upthrust. 2011 49 . The upthrust is a money making maneuver by the market makers to catch stops of those who are short and trap the unwary into buying. However if the next bar is up on a narrow spread with high volume this is also weakness. With weakness in the background this indicator carries more weight. The bar resembles a telegraph pole. True upthrusts appear when you have WEAKNESS in the background. If there is strength in the near background this supply may be tested so look for low volume down bars closing in the middle or high. Also watch for down bars closing off the lows with high volume which show potential strength. Subsequent no demand up bars or upthrusts confirm the weakness. Remember the market is an unfolding story bar by bar. Future: The next bar should be down to confirm this indicator. If there is strength in the background be very cautious. These would need to be tested.SOW 48: SUPPLY COMING IN NOTE: None. or for shakeouts. COPYRIGHT TRADEGUIDER SYSTEMS. If the market is still strong it should follow the path of least resistance which is up. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). The bar is marked up but falls off rapidly to close on or near its low with an average to wide price spread. Remember the market is an unfolding story bar by bar. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. Is there an old top to the left as this could be absorption volume. These would need to be tested. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). Also watch for down bars closing off the lows with high volume that show potential strength. However make sure that it is not a false breakout which is a SOW. You need to adjust your analysis accordingly. Also high volume up bars on narrow spreads show further selling.SOW 49: SUPPLY COMING IN NOTE: None. COPYRIGHT TRADEGUIDER SYSTEMS. Look for other SOW to confirm this indicator such as upthrusts and no demand. Bar Description: This is an up bar closing off the high showing an increase in volume suggesting supply has entered the market. If there is strength in the near background or a breakout this supply may be tested so look for low volume down bars closing in the middle or high. 2011 50 . If this is the start of a distribution phase expect whipsawing whilst a cause is built to the downside. If the market is still strong it should follow the path of least resistance which is up. Background: Look carefully to the background. With weakness in the background this indicator carries more weight. or for shakeouts. If volume is ultra high this could be climactic action. Sometimes this can be a breakout through an old top which is a sign of strength. Future: If the next bar is down this confirms the weakness. A successful test would then be bullish. Subsequent no demand up bars or upthrusts confirm the weakness. This shows lack of selling pressure. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. COPYRIGHT TRADEGUIDER SYSTEMS. 2011 51 . Future: The next bar should be down to confirm this indicator. Further SOW such as upthrusts will confirm the weakness. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. If the price spread is greater than narrow this can still show weakness.SOW 50: NO DEMAND NOTE: None. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. The professionals have noticed this weakness and are not interested any longer in the up move. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. It can be a down bar if the high is higher than the previous bar. If there are other SOW in the background expect lower prices. This shows the professional money is not interested in higher prices at this time. If there is weakness in the background this SOW becomes more important. Background: Pay particular attention to the background. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). This would need to be tested. Background: Be very careful here. Bar Description: The bar is marked up but falls off rapidly to close on or near its low normally with an average to wide price spread. The upthrust is a moneymaking maneuver by the market makers to catch stops of those who are short and trap the unwary into buying. If there is strength in the background be very cautious. This shows lack of selling pressure. 2011 52 . This would need to be tested. True upthrusts appear when you have WEAKNESS in the background. Be cautious if following the upthrust you see a down bar with a narrow spread with volume lower than the two previous bars. The bar resembles a telegraph pole. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength.g. Be wary of a test with SOW in the background as it may well fail.SOW 51: UPTHRUST NOTE: None. This would be characterized by high volume up bars closing in the middle and no demand up bars. Further SOW e. Prices are marked up at the open often on good news. It is likely to be tested or may be a false upthrust Future: Following a true upthrust expect lower prices. no demand adds to the weakness. COPYRIGHT TRADEGUIDER SYSTEMS. High volume shows selling by the professionals while low volume shows their lack of interest in the upside. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). If volume is ultra-‐high this adds to the weakness. However make sure that it is not a false breakout which is a SOW. No demand up bars and upthrusts will add to the negative picture. Bar Description: The bar should be an up bar on high volume and closing off the highs. It shows supply entering the market. You need to adjust your analysis accordingly. Also high volume up bars on narrow spreads show further selling. Future: If the next bar is down closing near its lows this confirms the weakness. or for shakeouts. Background: Look carefully to the background. 2011 53 . A successful test would then be bullish. Also watch for down bars closing off the lows with high volume which show potential strength. Subsequent no demand up bars or upthrusts confirm the weakness.SOW 52: SELLING PRESSURE NOTE: None. If the market is still strong it should follow the path of least resistance which is up. These would need to be tested. COPYRIGHT TRADEGUIDER SYSTEMS. If there is strength in the near background or a breakout this supply may be tested so look for low volume down bars closing in the middle or high. Sometimes this can be a breakout through an old top which is a sign of strength. Remember the market is an unfolding story bar by bar. With weakness in the background this indicator carries more weight. Is there an old top to the left as this could be absorption volume. SOW 53: NO DEMAND NOTE: None. Further SOW such as upthrusts will confirm the weakness. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. This would need to be tested. Background: Pay particular attention to the background. If there is weakness in the background this SOW becomes more important. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). 2011 54 . Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. The professionals have noticed this weakness and are not interested any longer in the up move. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. If there are other SOW in the background expect lower prices. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. It can be a down bar if the high is higher than the previous bar. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. This shows lack of selling pressure. COPYRIGHT TRADEGUIDER SYSTEMS. If the price spread is greater than narrow this can still show weakness. Future: The next bar should be down to confirm this indicator. This shows the professional money is not interested in higher prices at this time. If the next bar is down closing near its lows this confirms the weakness. A false breakout would be a sign of weakness. You need to adjust your analysis accordingly. If the market is still strong it should follow the path of least resistance which is up. Strong markets do not behave in this way. Also watch for down bars closing off the lows with high volume which show potential strength.SOW 54: SUPPLY SWAMPING DEMAND NOTE: None. Background: Look carefully to the background. A successful test would then be bullish. Bar Description: This is a high volume up bar closing off its highs. Future: If the bar represents a genuine breakout the supply present will need to be tested. COPYRIGHT TRADEGUIDER SYSTEMS. Sometimes this can be a breakout through an old top which is a sign of strength. If volume is ultra high this could be climactic action. However make sure that it is not a false breakout which is a SOW. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. If there is strength in the near background or a breakout this supply may be tested so look for low volume down bars closing in the middle or high. or for shakeouts. Is there an old top to the left as this could be absorption volume. No demand up bars and upthrusts will add to the negative picture. 2011 55 . If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). Subsequent no demand up bars or upthrusts confirm the weakness. Remember the market is an unfolding story bar by bar. These would need to be tested. With weakness in the background this indicator carries more weight. Also high volume up bars on narrow spreads show further selling. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. COPYRIGHT TRADEGUIDER SYSTEMS. This shows the professional money is not interested in higher prices at this time. Future: The next bar should be down to confirm this indicator. This would need to be tested.SOW 55: NO DEMAND NOTE: None. If there are other SOW in the background expect lower prices. This shows lack of selling pressure. If there is weakness in the background this SOW becomes more important. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. It can be a down bar if the high is higher than the previous bar. 2011 56 . With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. Background: Pay particular attention to the background. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. The professionals have noticed this weakness and are not interested any longer in the up move. If the price spread is greater than narrow this can still show weakness. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. Further SOW such as upthrusts will confirm the weakness. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. This would need to be tested. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. This shows the professional money is not interested in higher prices at this time. The professionals have noticed this weakness and are not interested any longer in the up move. Further SOW such as upthrusts will confirm the weakness. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars.SOW 57: NO DEMAND NOTE: None. If there is weakness in the background this SOW becomes more important. If there are other SOW in the background expect lower prices. COPYRIGHT TRADEGUIDER SYSTEMS. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. Background: Pay particular attention to the background. It can be a down bar if the high is higher than the previous bar. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. This shows lack of selling pressure. 2011 57 . Future: The next bar should be down to confirm this indicator. If the price spread is greater than narrow this can still show weakness. This would confirm there was buying in the down bar although still a lot of supply. Future: This set up shows weakness. This would only lead to a strong rally if a cause has been built with buying in the background. no demand and upthrusts would confirm the weakness. After a period of rising prices this could be the start of distribution by one or more professional groups. Background: Pay particular attention to the background. However be cautious if volume on the down bar was very high to ultra high with the next bar up. However if the market has already fallen for some time this could be the start of a shakeout especially if the news is bad. Bar Description: The first bar is up and closing off the highs. This is designed to lock traders who are long into poor positions. High volume up bars closing off their highs. If there are other SOW in the near background this adds to the weakness.SOW 58: TRAP UPMOVE NOTE: This indicator is based upon the action of two bars. Low volume down bars shows lack of selling. 2011 58 . The next bar is a wide spread down bar closing near the lows with its high higher than the first bar. COPYRIGHT TRADEGUIDER SYSTEMS. COPYRIGHT TRADEGUIDER SYSTEMS. If the market is still strong it should follow the path of least resistance which is up. 2011 59 . Subsequent no demand up bars or upthrusts confirm the weakness. Remember the market is an unfolding story bar by bar. A successful test would then be bullish. Bar Description: A high volume up bar usually closing off the highs with the previous bar up on high volume indicates supply is overcoming demand.SOW 59: SUPPLY COMING IN NOTE: None. These would need to be tested. Also high volume up bars on narrow spreads show further selling. or for shakeouts. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). However make sure that it is not a false breakout which is a SOW. If volume is ultra high this could be climactic action. If there is strength in the near background or a breakout this supply may be tested so look for low volume down bars closing in the middle or high. With weakness in the background this indicator carries more weight. You need to adjust your analysis accordingly. (Continued on the next page) (SOW 59: SUPPLY COMING IN continued) Background: Look carefully to the background. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. Sometimes this can be a breakout through an old top which is a sign of strength. Is there an old top to the left as this could be absorption volume? Future: If the next bar is down closing near its lows this confirms the weakness. No demand up bars and upthrusts will add to the negative picture. Also watch for down bars closing off the lows with high volume which show potential strength. or for shakeouts. These would need to be tested. A successful test would then be bullish. Add more strength if the volume is higher on the up bar and it is into new fresh high ground. Remember the market is an unfolding story bar by bar. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. You need to adjust your analysis accordingly. COPYRIGHT TRADEGUIDER SYSTEMS. If the market is still strong it should follow the path of least resistance which is up. Bar Description: A high volume up bar usually closing off the highs with the next bar down indicates supply is overcoming demand. Future: This set up shows weakness. With weakness in the background this indicator carries more weight. Also high volume up bars on narrow spreads show further selling. No demand up bars and upthrusts will add to the negative picture. This can appear similar to a top reversal. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). If the next bar is down closing near its lows this confirms the weakness.SOW 63: SUPPLY COMING IN NOTE: This indicator is based upon the action of 2 bars. 2011 60 . Background: Look carefully to the background. If there is strength in the near background this supply may be tested so look for low volume down bars closing in the middle or high. Is there an old top to the left as this could be absorption volume. Subsequent no demand up bars or upthrusts confirm the weakness. Also watch for down bars closing off the lows with high volume which show potential strength. However be cautious if volume on the down bar was very high to ultra high with the next bar up. If the high of the down bar is higher than the previous high this also adds to the weakness. This would confirm there was buying in the down bar although still a lot of supply. or for shakeouts. Also watch for down bars closing off the lows with high volume which show potential strength. If the market is still strong it should follow the path of least resistance which is up. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). This is effort with no result.SOW 67: NO RESULT FROM EFFORT NOTE: None. A successful test would then be bullish. Remember the market is an unfolding story bar by bar. COPYRIGHT TRADEGUIDER SYSTEMS. 2011 61 . Bar Description: A down bar following an up bar with high plus volume shows weakness. These would need to be tested. These show an effort to push prices higher. Subsequent no demand up bars or upthrusts confirm the weakness. You need to adjust your analysis accordingly. Failure to follow through on the current bar indicates weakness. Background: There should be up bars with increased volume in the immediate background. If there is strength in the near background this supply may be tested so look for low volume down bars closing in the middle or high. Also high volume up bars on narrow spreads show further selling. Future: If the next bar is down closing near its lows this confirms the weakness. These show an effort to push prices higher. These would need to be tested. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). You need to adjust your analysis accordingly. Remember the market is an unfolding story bar by bar. Future: If the next bar is down closing near its lows this confirms the weakness. or for shakeouts. Failure to follow through on the current bar indicates weakness. Also watch for down bars closing off the lows with high volume which show potential strength. If the market is still strong it should follow the path of least resistance which is up. A successful test would then be bullish. If there is strength in the near background this supply may be tested so look for low volume down bars closing in the middle or high. This is effort with no result. COPYRIGHT TRADEGUIDER SYSTEMS. Also high volume up bars on narrow spreads show further selling. 2011 62 . Bar Description: A down bar following an up bar with high plus volume shows weakness. Subsequent no demand up bars or upthrusts confirm the weakness.SOW 68: NO RESULT FROM EFFORT NOTE: None. Background: There should be up bars with increased volume in the immediate background. SOW 71: END OF RISING MARKET NOTE: None. Do you have an old top to the left? If so this could be absorption volume. Be cautious if you now see a down bar with a narrow spread with volume lower than the two previous bars. Bar Description: The bar should be a narrow spread up bar with high volume and closing off the highs and be into fresh new high ground. This shows lack of selling pressure. But remember this weakness will not suddenly disappear. There should be no old trading ranges at or near this level (see below). If the market makers were bullish they would have marked prices up on this buying. We know that there has been buying by the high volume. Also as markets rise a point will be reached when those traders who have missed out on the up move will rush in to buy before losing out on this fantastic bull run. Future: Prices should now decline. This would need to be tested. This type of action is bearish. Any up move back into the area of supply on low volume with narrow spreads or with upthrusts is a further SOW. Background: This is ONLY VALID if you have ALREADY SEEN A SUBSTANTIAL UP MOVE having taken place. When not appearing in genuinely new high ground this can represent absorption volume. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. Even traders that are already long will add to their positions. Here the professionals are willing to absorb the supply of locked in traders who had bought at higher prices. The news will be 'good'. This becomes a sign of strength. After a period of rising prices you are vulnerable to one or more professional groups taking profits. For the price spread to be narrow they must have been willing to supply the market without marking prices up. 2011 63 . COPYRIGHT TRADEGUIDER SYSTEMS. They can all be sucked into a bull market at the top. If there is weakness in the background this SOW becomes more important. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. This shows lack of selling pressure. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. It can be a down bar if the high is higher than the previous bar. Background: Pay particular attention to the background. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. If there are other SOW in the background expect lower prices. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. Future: The next bar should be down to confirm this indicator. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). The professionals have noticed this weakness and are not interested any longer in the up move. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. If the price spread is greater than narrow this can still show weakness. 2011 64 . If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. This shows the professional money is not interested in higher prices at this time.SOW 76: NO DEMAND NOTE: None. COPYRIGHT TRADEGUIDER SYSTEMS. Further SOW such as upthrusts will confirm the weakness. This would need to be tested. SOW 78: WEAKNESS BASED ON PRICE ACTION NOTE: None. Bar Description: This bar is a wide spread down bar closing on its low. Volume is not taken into account when producing the indicator. Prices are marked up at the opening to attract a following and catch stops. Background: Look carefully to the background. Do you have strength or weakness behind you? This signal works best when there is weakness in the background. However if the market had already fallen for some time this could be the start of a shakeout especially if the news is bad. Future: This set up shows weakness. However be cautious if volume on the down bar was very high to ultra high with the next bar up. This would confirm there was buying in the down bar although still a lot of supply. If the next bar is down this confirms the weakness. Also high volume up bars on narrow spreads show further selling. Subsequent no demand up bars or upthrusts confirm the weakness. With weakness in the background this indicator carries more weight. No demand up bars and upthrusts will add to the negative picture. These all suggest a distribution phase which may whipsaw until complete. Remember the news will be good to confuse you. If there is strength in the near background expect this supply to be tested so look for low volume down bars closing in the middle or high. If the market is still strong it should follow the path of least resistance which is up. Also watch out for down bars closing off the lows with high volume which show potential strength. These would need to be tested. Remember the market is an unfolding story bar by bar. You need to adjust your analysis accordingly. If the market moves up through this area of supply it may come back down to test it again later. A successful test would then be bullish. COPYRIGHT TRADEGUIDER SYSTEMS, 2011 65 SOW 84: WEAKNESS HAS APPEARED NOTE: None. Bar Description: An up bar closing off its highs is a potential SOW. If volume is lower than the two previous bars this is no demand but higher volume shows selling. Background: Pay more attention to this indicator when you have other signs of weakness in the near background. If there are SOS in the background be cautious as the market may just move sideways for a few bars. Future: Look to the following bars for confirmation. Low volume up bars back into the area of weakness show no demand. Upthrusts and further high volume up bars closing in the middle are also signs of weakness. Be cautious if you now see a down bar with a narrow spread with volume lower than the two previous bars. This shows lack of selling pressure. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. This would need to be tested. Remember you need to look at the whole picture rather like slotting together the pieces of a jig-‐saw. COPYRIGHT TRADEGUIDER SYSTEMS, 2011 66 SOW 86: FAILED TEST NOTE: None. Bar Description: A wide spread down bar closing on or near its low, with the low and close lower than the previous few bars, indicates weakness. Background: There should be a test in the immediate background (last few bars). The test has failed which in itself is a sign of weakness. This indicator works best with other weakness in the background. Study the background carefully and look at the trend. Are there signs of strength behind you? Future: Any down move may be short lived unless you have further weakness in the background. Subsequent no demand up bars or upthrusts confirm the weakness. If there is strength in the near background this weakness may be tested so look for low volume down bars closing in the middle or high, or for shakeouts. If the market is still strong it should follow the path of least resistance which is up. Also watch for down bars closing off the lows with high volume which show potential strength. These would need to be tested. Remember the market is an unfolding story bar by bar. You need to adjust your analysis accordingly. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). A successful test would then be bullish. COPYRIGHT TRADEGUIDER SYSTEMS, 2011 67 2011 68 . Bar Description: The previous bar was an up bar showing an increase in volume (ultra high volume adds to the weakness). This is especially true if you are into new fresh high ground. Remember the market is an unfolding story bar by bar. You need to adjust your analysis accordingly. For the current bar to close off its highs still with high volume suggests supply coming into the market. Subsequent no demand up bars or upthrusts confirm the weakness. or for shakeouts. Look carefully to the background. Also high volume up bars on narrow spreads show further selling. Strong markets do not behave in this way. If the market pushes up through this area of supply it may come back down to test it again later. However make sure that it is not a false breakout which is a SOW. If the market is still strong it should follow the path of least resistance which is up.SOW 89: POTENTIAL CLIMACTIC ACTION NOTE: None. The market may need to distribute further before a down move can begin so be patient. If there is strength in the near background or a breakout this supply may be tested so look for low volume down bars closing in the middle or high. Is there an old top to the left as this could be absorption volume? Future: If the next bar is down closing near its lows this confirms the weakness. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. COPYRIGHT TRADEGUIDER SYSTEMS. A successful test would then be bullish. Sometimes this can be a breakout through an old top which is a sign of strength. The professionals do this by supporting the market until they have sold their remaining holdings. But remember this weakness will not suddenly disappear. Background: The previous bar was an up bar with high volume. Remember the market is an unfolding story bar by bar. With weakness in the background this indicator carries more weight. These would need to be tested. A successful test would then be bullish. Also high volume up bars on narrow spreads show further selling. If there is strength in the near background this supply may be tested so look for low volume down bars closing in the middle or high. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). Background: Look carefully to the background.SOW 90: POSSIBLE HIDDEN SELLING NOTE: None. You need to adjust your analysis accordingly. or for shakeouts. If the market is still strong it should follow the path of least resistance which is up. No demand up bars and upthrusts will add to the negative picture. Is there an old top to the left as this could be absorption volume? Future: If the next bar is down closing near its lows this confirms the weakness. Bar Description: This is a level or up bar showing an increase in volume (supply) or low volume (no demand). Also watch for down bars closing off the lows with high volume which show potential strength. 2011 69 . COPYRIGHT TRADEGUIDER SYSTEMS. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. Subsequent no demand up bars or upthrusts confirm the weakness. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. This would confirm there was buying in the down bar although still a lot of supply. Is there an old top to the left as this could be absorption volume? Future: This set up shows weakness. Add more strength if the volume is higher on the up bar and it is into fresh new high ground.SOW 92: SUPPLY COMING IN NOTE: This indicator is based upon the action of 2 bars. No demand up bars and upthrusts will add to the negative picture. A successful test would then be bullish. COPYRIGHT TRADEGUIDER SYSTEMS. 2011 70 . With weakness in the background this indicator carries more weight. Background: Look carefully to the background. This can appear similar to a top reversal. Also high volume up bars on narrow spreads show further selling. However be cautious if volume on the down bar was very high to ultra high with the next bar up. Also watch for down bars closing off the lows with high volume which show potential strength. Bar Description: A high volume up bar usually closing off the highs with the next bar down indicates supply is overcoming demand. If the market is still strong it should follow the path of least resistance which is up. These would need to be tested. Remember the market is an unfolding story bar by bar. You need to adjust your analysis accordingly. Subsequent no demand up bars or upthrusts confirm the weakness. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). or for shakeouts. If the next bar is down closing near its lows this confirms the weakness. If the high of the down bar is higher than the previous high this adds to the weakness. If there is strength in the near background this supply may be tested so look for low volume down bars closing in the middle or high. SOW 94: TWO BAR REVERSAL NOTE: This indicator is based upon the action of two bars Bar Description: The first bar is an up bar closing near its high followed by a down bar closing near its low giving the appearance of a top reversal. A successful test would then be bullish. These would need to be tested. Look to the following bars for confirmation. Add more weight if volume is higher on the up bar. Future: This set up shows weakness. Remember you need to look at the whole picture rather like slotting together the pieces of a jig-‐saw. Low volume up bars back into the area of the top reversal show no demand and weakness. Upthrusts and further high volume up bars closing in the middle are also signs of weakness. However be cautious if volume on the down bar was very high to ultra high with the next bar up. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). 2011 71 . Be wary if this indicator is immediately followed by down bars on reduced volume especially closing in the middle with a narrow spread. COPYRIGHT TRADEGUIDER SYSTEMS. Background: There should be a period of rising prices before this indicator appears. These show potential strength. If the high of the down bar is higher than the previous high this also adds to the weakness. Also watch for down bars closing off the lows with high volume which show potential strength. If the high of the first bar is into fresh new high ground and volume is high or greater this can be climactic action. This would confirm there was buying in the down bar although still a lot of supply. Prices are marked up at the open often on good news. The bar resembles a telegraph pole.g. True upthrusts appear when you have WEAKNESS in the background. The previous bar was a high volume up bar which in itself showed supply. If there is strength in the background be very cautious. High volume shows selling by the professionals while low volume shows their lack of interest in the upside. The upthrust is a money making maneuver by the market makers to catch stops of those who are short and trap the unwary into buying. It is likely to be tested or may be a false upthrust. Further SOW e. Background: Be very careful here. This shows lack of selling pressure. no demand adds to the weakness. 2011 72 .SOW 96: UPTHRUST AFTER WEAKNESS NOTE: None. Be cautious if following the upthrust you see a down bar with a narrow spread with volume lower than the two previous bars. COPYRIGHT TRADEGUIDER SYSTEMS. Bar Description: The bar is marked up but falls off rapidly to close on or near its low normally with an average to wide price spread. This would need to be tested. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. Future: Following a true upthrust expect lower prices. This would be characterised by high volume up bars closing in the middle and no demand up bars. Be wary of a test with SOW in the background as it may well fail. Sometimes this can appear as a top reversal. These would need to be tested. A successful test would then be bullish. This would confirm there was buying in the down bar although still a lot of supply. However be cautious if volume on the down bar was very high to ultra high with the next bar up. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). Future: This set up shows weakness. 2011 73 . If the high of the down bar is higher than the previous high this also adds to the weakness. Background: Have you seen any previous SOW in the background? There has been an effort to rise from the increased volume but for the next bar to be down shows supply has appeared. COPYRIGHT TRADEGUIDER SYSTEMS. Remember you need to look at the whole picture rather like slotting together the pieces of a jig-‐saw. If the next bar is down closing near its lows this confirms the weakness. Strong markets do not behave in this way. With weakness in the background this indicator carries more weight. If the market is still strong it should follow the path of least resistance which is up. or for shakeouts. Subsequent no demand up bars or upthrusts confirm the weakness. Also high volume up bars on narrow spreads show further selling. If there is strength in the near background this weakness may be tested so look for low volume down bars closing in the middle or high.SOW 97: REVERSAL AFTER EFFORT TO RISE NOTE: This indicator is based upon the action of two bars Bar Description: The first bar is an up bar closing on its high followed by a down bar retracing most of the previous bar's gain. Add more weight if the volume is higher on the up bar and is into fresh new high ground. Also watch for down bars closing off the lows with high volume which show potential strength. 2011 74 . Is there an old top to the left as this could be absorption volume. Strong markets do not behave in this way. A successful test would then be bullish. No demand up bars and upthrusts will add to the negative picture. Subsequent no demand up bars or upthrusts confirm the weakness. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). However make sure that it is not a false breakout which is a SOW. Also watch for down bars closing off the lows with high volume which show potential strength. Also high volume up bars on narrow spreads show further selling. These would need to be tested. Future: If the next bar is down closing near its lows this confirms the weakness. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. If volume is ultra high on the up bar this could be climactic action. If there is strength in the near background or a breakout this supply may be tested so look for low volume down bars closing in the middle or high. Bar Description: A high volume up bar usually closing off the highs with the next bar down indicates supply overcoming demand. Background: Look carefully to the background. or for shakeouts. You need to adjust your analysis accordingly. Remember the market is an unfolding story bar by bar.SOW 100: SUPPLY COMING IN NOTE: None. If the market is still strong it should follow the path of least resistance which is up. Sometimes this can be a breakout through an old top which is a sign of strength. COPYRIGHT TRADEGUIDER SYSTEMS. With weakness in the background this indicator carries more weight. no demand adds to the weakness. Future: Following a true upthrust expect lower prices. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. This shows lack of selling pressure. Further SOW e.g. If there is strength in the background be very cautious.SOW 101: UPTHRUST NOTE: None. 2011 75 . The bar resembles a telegraph pole. Be wary of a test with SOW in the background as it may well fail. COPYRIGHT TRADEGUIDER SYSTEMS. Background: Be very careful here. It is likely to be tested or may be a false upthrust. The upthrust is a moneymaking maneuver by the market makers to catch stops of those who are short and trap the unwary into buying. Be cautious if following the upthrust you see a down bar with a narrow spread with volume lower than the two previous bars. True upthrusts appear when you have WEAKNESS in the background. This would need to be tested. This would be characterized by high volume up bars closing in the middle and no demand up bars. Bar Description: The bar is marked up but falls off rapidly to close on or near its low normally with an average to wide price spread. Prices are marked up at the open often on good news. High volume shows selling by the professionals while low volume shows their lack of interest in the upside. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. If the price spread is greater than narrow this can still show weakness. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. This would need to be tested.SOW 102: NO DEMAND NOTE: None. This shows lack of selling pressure. Future: The next bar should be down to confirm this indicator. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. This shows the professional money is not interested in higher prices at this time. The professionals have noticed this weakness and are not interested any longer in the up move. Further SOW such as upthrusts will confirm the weakness. If there are other SOW in the background expect lower prices. 2011 76 . Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). It can be a down bar if the high is higher than the previous bar. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. Background: Pay particular attention to the background. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. If there is weakness in the background this SOW becomes more important. COPYRIGHT TRADEGUIDER SYSTEMS. This indicator usually follows a high volume up bar in the immediate background which when combined with the upthrust shows supply.SOW 103: UPTHRUST NOTE: None. Future: Following a true upthrust expect lower prices. Prices are marked up at the open often on good news. Be wary of a test with SOW in the background as it may well fail. Further SOW e. True upthrusts appear when you have WEAKNESS in the background. Be cautious if following the upthrust you see a down bar with a narrow spread with volume lower than the two previous bars.g. If there is strength in the background be very cautious. This would need to be tested. COPYRIGHT TRADEGUIDER SYSTEMS. This shows lack of selling pressure. Background: Be very careful here. Bar Description: The bar is marked up but falls off rapidly to close on or near its low normally with an average to wide price spread. 2011 77 . no demand adds to the weakness. High volume shows selling by the professionals while low volume shows their lack of interest in the upside.. The upthrust is a moneymaking maneuver by the market makers to catch stops of those who are short and trap the unwary into buying. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. It is likely to be tested or may be a false upthrust. The bar resembles a telegraph pole. This would be characterized by high volume up bars closing in the middle and no demand up bars. Remember the market is an unfolding story bar by bar. Add more strength if the volume is higher on the up bar and it is into fresh new high ground. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). Is there an old top to the left as this could be absorption volume. Bar Description: A high volume up bar usually closing off the highs with the next bar down indicates supply is overcoming demand. A successful test would then be bullish.SOW 104: SUPPLY COMING IN NOTE: This indicator is based upon the action of two bars. Background: Look carefully to the background. No demand up bars and upthrusts will add to the negative picture. If the high of the down bar is higher than the previous high this adds to the weakness. Also watch for down bars closing off the lows with high volume which show potential strength. However be cautious if volume on the down bar was very high to ultra high with the next bar up. You need to adjust your analysis accordingly. If there is strength in the near background this supply may be tested so look for low volume down bars closing in the middle or high. These would need to be tested. Future: This set up shows weakness. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. COPYRIGHT TRADEGUIDER SYSTEMS. If the next bar is down closing near its lows this confirms the weakness. Subsequent no demand up bars or upthrusts confirm the weakness. This can appear similar to a top reversal. Also high volume up bars on narrow spreads show further selling. If the market is still strong it should follow the path of least resistance which is up. or for shakeouts. This would confirm there was buying in the down bar although still a lot of supply. 2011 78 . With weakness in the background this indicator carries more weight. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. Further SOW such as upthrusts will confirm the weakness. This shows lack of selling pressure. If there are other SOW in the background expect lower prices. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. 2011 79 . Background: Pay particular attention to the background. COPYRIGHT TRADEGUIDER SYSTEMS. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. This would need to be tested.With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand.SOW 106: NO DEMAND NOTE: None. It can be a down bar if the high is higher than the previous bar. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. If the price spread is greater than narrow this can still show weakness. This shows the professional money is not interested in higher prices at this time. The professionals have noticed this weakness and are not interested any longer in the up move. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. If there is weakness in the background this SOW becomes more important. Future: The next bar should be down to confirm this indicator. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. This shows lack of selling pressure. 2011 80 . Future: The next bar should be down to confirm this indicator. This would need to be tested. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. COPYRIGHT TRADEGUIDER SYSTEMS. If there is weakness in the background this SOW becomes more important. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. If there are other SOW in the background expect lower prices. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. It can be a down bar if the high is higher than the previous bar.With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). Background: Pay particular attention to the background. The professionals have noticed this weakness and are not interested any longer in the up move. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move.SOW 107: NO DEMAND NOTE: None. This shows the professional money is not interested in higher prices at this time. If the price spread is greater than narrow this can still show weakness. Further SOW such as upthrusts will confirm the weakness. These would need to be tested. If the high of the down bar is higher than the previous high this also adds to the weakness. Background: There should be a period of rising prices before this indicator appears. Future: This set up shows weakness. Low volume up bars back into the area of the top reversal show no demand and weakness. 2011 81 . If the high of the first bar is into fresh new high ground and volume is high or greater this can be climactic action. COPYRIGHT TRADEGUIDER SYSTEMS. Add more weight if volume is higher on the up bar. A successful test would then be bullish. Also watch for down bars closing off the lows with high volume which show potential strength. However be cautious if volume on the down bar was very high to ultra high with the next bar up. Look to the following bars for confirmation. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high).SOW 108: TOP REVERSAL NOTE: This indicator is based upon the action of two bars Bar Description: The first bar is an up bar closing near its high followed by a down bar closing near its low giving the appearance of a top reversal. Remember you need to look at the whole picture rather like slotting together the pieces of a jig-‐saw. Be wary if this indicator is immediately followed by down bars on reduced volume especially closing in the middle with a narrow spread. This would confirm there was buying in the down bar although still a lot of supply. Upthrusts and further high volume up bars closing in the middle are also signs of weakness. These show potential strength. This would need to be tested. Further SOW such as upthrusts will confirm the weakness. COPYRIGHT TRADEGUIDER SYSTEMS. Background: Pay particular attention to the background. If the price spread is greater than narrow this can still show weakness. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. If there is weakness in the background this SOW becomes more important. Future: The next bar should be down to confirm this indicator. The professionals have noticed this weakness and are not interested any longer in the up move. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. This shows the professional money is not interested in higher prices at this time. This shows lack of selling pressure. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). If there are other SOW in the background expect lower prices.SOW 115: NO DEMAND NOTE: None. 2011 82 . It can be a down bar if the high is higher than the previous bar. Bar Description: The bar is marked up but falls off rapidly to close on or near its low with an average to wide price spread. It is likely to be tested or may be a false upthrust. If there is strength in the background be very cautious. However if the market has already fallen for some time this could be the start of a shakeout especially if the news is bad.g. Be wary of a test with SOW in the background as it may well fail. True upthrusts appear when you have WEAKNESS in the background. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength.SOW 119: UPTHRUST NOTE: None. Further SOW e. High volume shows selling by the professionals while low volume shows their lack of interest in the upside. Be cautious if following the upthrust you see a down bar with a narrow spread with volume lower than the two previous bars. Background: Be very careful here. This would need to be tested. Also if it closes as a down bar this is normally a sign of strength but the high being higher than the previous bar's high makes it a weak bar (hence the term hidden upthrust). Prices are marked up at the open often on good news. The upthrust is a money making maneuver by the market makers to catch stops of those who are short and trap the unwary into buying. The bar resembles a telegraph pole. This shows lack of selling pressure. Future: Following a true upthrust expect lower prices. 2011 83 . COPYRIGHT TRADEGUIDER SYSTEMS. High volume shows selling and low volume indicates lack of interest at the higher levels by the professionals. no demand adds to the weakness. This would be characterized by high volume up bars closing in the middle and no demand up bars. SOW 121: WEAKNESS HAS APPEARED NOTE: None. Upthrusts and further high volume up bars closing in the middle are also signs of weakness. Future: Look to the following bars for confirmation. This can appear as a top reversal. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. Be cautious if volume on the down bar is ultra high as this could contain buying albeit with a lot of supply present. Is there an old top to the left as this could be absorption volume. 2011 84 . This shows lack of selling pressure. Add more weight if the volume is higher on the up bar and is into fresh new high ground. Bar Description: With the previous high volume up bar usually closing off the highs with this bar down indicates supply is overcoming demand. Low volume up bars back into the area of the supply show no demand and weakness. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. If the high of the down bar is higher than the previous high this also adds to the weakness. Background: Look carefully to the background. Be cautious if following the weakness you see a down bar with a narrow spread with volume lower than the two previous bars. Remember you need to look at the whole picture rather like slotting together the pieces of a jig-‐saw. Ultra high volume on the down bar with the next bar up shows some buying although still a lot of supply present. This would need to be tested. COPYRIGHT TRADEGUIDER SYSTEMS. You need to adjust your analysis accordingly. Also watch for down bars closing off the lows with high volume which show potential strength. or for shakeouts. Look carefully to the background. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). Also high volume up bars on narrow spreads show further selling. If the market is still strong it should follow the path of least resistance which is up. Subsequent no demand up bars or upthrusts confirm the weakness. Future: If the next bar is down closing near its lows this confirms the weakness. Is there an old top to the left as this could be absorption volume. If volume is ultra high this could be climactic action. No demand up bars and upthrusts will add to the negative picture.SOW 122: SUPPLY COMING IN NOTE: None. However make sure that it is not a false breakout which is a SOW. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. These would need to be tested. 2011 85 . Remember the market is an unfolding story bar by bar. COPYRIGHT TRADEGUIDER SYSTEMS. Bar Description: This is a high volume up bar (often gapped up) The high volume shows professional activity in the market. With weakness in the background this indicator carries more weight. Background: The previous bar was up on high volume.. If there is strength in the near background or a breakout this supply may be tested so look for low volume down bars closing in the middle or high. A successful test would then be bullish. Sometimes this can be a breakout through an old top which is a sign of strength. You need to adjust your analysis accordingly. With weakness in the background this indicator carries more weight. These would need to be tested. Future: This set up shows weakness. Also high volume up bars on narrow spreads show further selling. Subsequent no demand up bars or upthrusts confirm the weakness. Is there an old top to the left as this could be absorption volume. Also watch for down bars closing off the lows with high volume which show potential strength. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). Bar Description: A high volume up bar usually closing off the highs with the next bar down indicates supply is overcoming demand. Add more strength if the volume is higher on the up bar and it is into fresh new high ground. Remember the market is an unfolding story bar by bar. Background: Look carefully to the background. COPYRIGHT TRADEGUIDER SYSTEMS. If the high of the down bar is higher than the previous high this adds to the weakness. If the market is still strong it should follow the path of least resistance which is up. This would confirm there was buying in the down bar although still a lot of supply. If the next bar is down closing near its lows this confirms the weakness.SOW 123: SUPPLY COMING IN NOTE: This indicator is based upon the action of two bars. However be cautious if volume on the down bar was very high to ultra high with the next bar up. A successful test would then be bullish. or for shakeouts. 2011 86 . No demand up bars and upthrusts will add to the negative picture. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. If there is strength in the near background this supply may be tested so look for low volume down bars closing in the middle or high. This can appear similar to a top reversal. A successful test would then be bullish. Look to the following bars for confirmation. Background: There should be a period of rising prices before this indicator appears. COPYRIGHT TRADEGUIDER SYSTEMS. However be cautious if volume on the down bar was very high to ultra high with the next bar up. If the high of the first bar is into fresh new high ground and volume is high or greater this can be climactic action. 2011 87 . Add more weight if volume is higher on the up bar. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). Also watch for down bars closing off the lows with high volume which show potential strength. Be wary if this indicator is immediately followed by down bars on reduced volume especially closing in the middle with a narrow spread. This would confirm there was buying in the down bar although still a lot of supply. Upthrusts and further high volume up bars closing in the middle are also signs of weakness. These would need to be tested. If the high of the down bar is higher than the previous high this also adds to the weakness. These show potential strength. Low volume up bars back into the area of the top reversal show no demand and weakness. Future: This set up shows weakness.SOW 126: TWO BAR REVERSAL NOTE: This indicator is based upon the action of two bars Bar Description: The first bar is an up bar closing near its high followed by a down bar closing near its low giving the appearance of a top reversal. Remember you need to look at the whole picture rather like slotting together the pieces of a jig-‐saw. If the price spread is greater than narrow this can still show weakness. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. Future: The next bar should be down to confirm this indicator. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. The professionals have noticed this weakness and are not interested any longer in the up move. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. If there is weakness in the background this SOW becomes more important. This shows lack of selling pressure. This would need to be tested. If there are other SOW in the background expect lower prices.SOW 127: NO DEMAND NOTE: None. This shows the professional money is not interested in higher prices at this time. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. 2011 88 . Background: Pay particular attention to the background. It can be a down bar if the high is higher than the previous bar. Further SOW such as upthrusts will confirm the weakness. COPYRIGHT TRADEGUIDER SYSTEMS. You need to adjust your analysis accordingly. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. Future: This set up shows weakness. No demand up bars and upthrusts will add to the negative picture. A successful test would then be bullish. With weakness in the background this indicator carries more weight. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). If the high of the down bar is higher than the previous high this adds to the weakness. Subsequent no demand up bars or upthrusts confirm the weakness. However be cautious if volume on the down bar was very high to ultra high with the next bar up. Remember the market is an unfolding story bar by bar.SOW 128: SUPPLY COMING IN NOTE: This indicator is based upon the action of two bars. Also high volume up bars on narrow spreads show further selling. Background: Look carefully to the background. This can appear similar to a top reversal. COPYRIGHT TRADEGUIDER SYSTEMS. If the market is still strong it should follow the path of least resistance which is up. If the next bar is down closing near its lows this confirms the weakness. Also watch for down bars closing off the lows with high volume which show potential strength. or for shakeouts. If there is strength in the near background this supply may be tested so look for low volume down bars closing in the middle or high. Is there an old top to the left as this could be absorption volume. These would need to be tested. Add more strength if the volume is higher on the up bar and it is into fresh new high ground. Bar Description: A high volume up bar usually closing off the highs with the next bar down indicates supply is overcoming demand. 2011 89 . This would confirm there was buying in the down bar although still a lot of supply. Prices are marked up at the open often on good news. Look carefully to the background. or for shakeouts. Background: The previous bar was up with high volume. The upthrust is a money making maneuver by the market makers to catch stops of those who are short and trap the unwary into buying. A successful test would then be bullish. COPYRIGHT TRADEGUIDER SYSTEMS. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). You need to adjust your analysis accordingly. The bar resembles a telegraph pole. 2011 90 . Is there an old top to the left as this could be absorption volume? Future: If the next bar is down closing near its lows this confirms the weakness. Bar Description: The bar is marked up but falls off rapidly to close on or near its low normally with an average to wide price spread. No demand up bars and upthrusts will add to the negative picture. Subsequent no demand up bars or upthrusts confirm the weakness. After a period of rising prices this could be the start of distribution by one or more professional groups. If there is strength in the near background this supply may be tested so look for low volume down bars closing in the middle or high. If the market is still strong it should follow the path of least resistance which is up. Also high volume up bars on narrow spreads show further selling. With weakness in the background this indicator carries more weight. Also watch for down bars closing off the lows with high volume which show potential strength.SOW 129: UPTHRUST AFTER SUPPLY NOTE: None. These would need to be tested. High volume shows selling by the professionals while low volume shows their lack of interest in the upside. Remember the market is an unfolding story bar by bar. With weakness in the background this indicator carries more weight. A successful test would then be bullish. This can appear similar to a top reversal. If the next bar is down closing near its lows this confirms the weakness. These would need to be tested. If the market is still strong it should follow the path of least resistance which is up. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high).SOW 130: SUPPLY COMING IN NOTE: This indicator is based upon the action of two bars. Remember the market is an unfolding story bar by bar. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. Also high volume up bars on narrow spreads show further selling. Future: This set up shows weakness. No demand up bars and upthrusts will add to the negative picture. Background: Look carefully to the background. Subsequent no demand up bars or upthrusts confirm the weakness. If there is strength in the near background this supply may be tested so look for low volume down bars closing in the middle or high. You need to adjust your analysis accordingly. or for shakeouts. Is there an old top to the left as this could be absorption volume. Bar Description: A high volume up bar usually closing off the highs with the next bar down indicates supply is overcoming demand. Also watch for down bars closing off the lows with high volume. COPYRIGHT TRADEGUIDER SYSTEMS. However be cautious if volume on the down bar was very high to ultra high with the next bar up. Add more strength if the volume is higher on the up bar and it is into fresh new high ground. This would confirm there was buying in the down bar although still a lot of supply. which show potential strength. 2011 91 . If the high of the down bar is higher than the previous high this adds to the weakness. This shows lack of selling pressure. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. This shows the professional money is not interested in higher prices at this time. Future: The next bar should be down to confirm this indicator. This would need to be tested. If the price spread is greater than narrow this can still show weakness.SOW: 134 NO DEMAND NOTE: None. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). Further SOW such as upthrusts will confirm the weakness. If there are other SOW in the background expect lower prices. If there is weakness in the background this SOW becomes more important. It can be a down bar if the high is higher than the previous bar. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. The professionals have noticed this weakness and are not interested any longer in the up move. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. 2011 92 . Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. Background: Pay particular attention to the background. COPYRIGHT TRADEGUIDER SYSTEMS. This shows lack of selling pressure. This would need to be tested.SOW 142: WEAKNESS HAS APPEARED NOTE: None. When not appearing in genuinely new high ground this can represent absorption volume. COPYRIGHT TRADEGUIDER SYSTEMS. Bar Description: The bar should be a narrow spread up bar and closing off the highs and be into fresh new high ground. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. Future: This indicator shows weakness but is the volume high enough to stop the up move?. Background: This is ONLY VALID if you have ALREADY SEEN A SUBSTANTIAL UP MOVE having taken place. There should be no old trading ranges at or near this level (see below). This becomes a sign of strength. Be cautious if you now see a down bar with a narrow spread with volume lower than the two previous bars. Any up move back into this area on low volume with narrow spreads or with upthrusts is a further SOW. 2011 93 . Do you have an old top to the left? If so this could be absorption volume. If volume is low it shows lack of interest in the upside whereas higher volume shows some selling. Ideally there should be other signs of weakness in the background. Here the professionals are willing to absorb the supply of locked in traders who had bought at higher prices. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. Future: The next bar should be down to confirm this indicator. The professionals have noticed this weakness and are not interested any longer in the up move. If there is weakness in the background this SOW becomes more important. This would need to be tested. COPYRIGHT TRADEGUIDER SYSTEMS. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. If the price spread is greater than narrow this can still show weakness. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. Further SOW such as upthrusts will confirm the weakness. It can be a down bar if the high is higher than the previous bar.SOW 143: NO DEMAND NOTE: None. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. If there are other SOW in the background expect lower prices. 2011 94 . This shows the professional money is not interested in higher prices at this time. This shows lack of selling pressure. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. Background: Pay particular attention to the background. COPYRIGHT TRADEGUIDER SYSTEMS. Future: The next bar should be down to confirm this indicator. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. This shows the professional money is not interested in higher prices at this time. If the price spread is greater than narrow this can still show weakness. If there is weakness in the background this SOW becomes more important. It can be a down bar if the high is higher than the previous bar. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. This shows lack of selling pressure. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. If there are other SOW in the background expect lower prices. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). Further SOW such as upthrusts will confirm the weakness. This would need to be tested. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand.SOW 145: NO DEMAND NOTE: None. Background: Pay particular attention to the background. 2011 95 . The professionals have noticed this weakness and are not interested any longer in the up move. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. This would need to be tested. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. This shows the professional money is not interested in higher prices at this time. Further SOW such as upthrusts will confirm the weakness. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). Background: Pay particular attention to the background. If there are other SOW in the background expect lower prices. It can be a down bar if the high is higher than the previous bar. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. If the price spread is greater than narrow this can still show weakness.SOW 146: NO DEMAND NOTE: None. 2011 96 . The professionals have noticed this weakness and are not interested any longer in the up move. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. If there is weakness in the background this SOW becomes more important Future: The next bar should be down to confirm this indicator. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. COPYRIGHT TRADEGUIDER SYSTEMS. This shows lack of selling pressure. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. If volume is lower than the two previous bars this is no demand but higher volume shows selling. 2011 97 . Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. Be cautious if you now see a down bar with a narrow spread with volume lower than the two previous bars. This would need to be tested. Background: Pay more attention to this indicator when you have other signs of weakness in the near background. Remember you need to look at the whole picture rather like slotting together the pieces of a jig-‐saw. Bar Description: An up bar closing off its highs is a potential SOW. Upthrusts and further high volume up bars closing in the middle are also signs of weakness. Low volume up bars back into the area of weakness show no demand.If there are SOS in the background be cautious as the market may just move sideways for a few bars.SOW 148: WEAKNESS HAS APPEARED NOTE: None. This shows lack of selling pressure. COPYRIGHT TRADEGUIDER SYSTEMS. Future: Look to the following bars for confirmation. Sometimes this can be a breakout through an old top to the left which is a sign of strength. However make sure it is not a false breakout which is a SOW. On its own it may not be sufficient to lead to a fall especially if you are in an up trend. If you see low volume down bars especially on a narrow spread or high volume down bars closing in the middle or high this confirms the strength. when it appears will be on an up bar.SOW 159: SUPPLY OVERCOMING DEMAND NOTE: None. 2011 98 . Bar Description: This indicator is trying to pick up subtle changes in the balance of supply and demand. The bar has noticed some selling entering the market. Future: The next bar should be down to confirm ths indicator. Is there an old top to the left as this could be absorption volume. Background: Look for other signs of weakness in the immediate background to support this indicator. With strength in the background there may well be too much support for a fall to take place. Always remember to look at the whole picture and not the last few bars.With weakness in the background give this indicator more weight. COPYRIGHT TRADEGUIDER SYSTEMS. There may still need to be further selling on up bars and no demand before the market can fall. Remember weakness. This shows the professional money is not interested in higher prices at this time. The professionals have noticed this weakness and are not interested any longer in the up move. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. This would need to be tested. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand.SOW 192: NO DEMAND NOTE: None. Further SOW such as upthrusts will confirm the weakness. If the price spread is greater than narrow this can still show weakness. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). COPYRIGHT TRADEGUIDER SYSTEMS. Background: Pay particular attention to the background. This shows lack of selling pressure. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. If there are other SOW in the background expect lower prices. It can be a down bar if the high is higher than the previous bar. 2011 99 . Future: The next bar should be down to confirm this indicator. If there is weakness in the background this SOW becomes more important. Further SOW such as upthrusts will confirm the weakness. If there are other SOW in the background expect lower prices. If the price spread is greater than narrow this can still show weakness. This shows lack of selling pressure. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand.SOW 193: NO DEMAND NOTE: None. This shows the professional money is not interested in higher prices at this time. It can be a down bar if the high is higher than the previous bar. COPYRIGHT TRADEGUIDER SYSTEMS. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). This would need to be tested. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply.If there is weakness in the background this SOW becomes more important. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. Future: The next bar should be down to confirm this indicator. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. Background: Pay particular attention to the background. The professionals have noticed this weakness and are not interested any longer in the up move. 2011 100 . If there are other SOW in the background expect lower prices. If there is weakness in the background this SOW becomes more important. 2011 101 . Future: The next bar should be down to confirm this indicator. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). Background: Pay particular attention to the background. Further SOW such as upthrusts will confirm the weakness. If the price spread is greater than narrow this can still show weakness. This shows the professional money is not interested in higher prices at this time. The professionals have noticed this weakness and are not interested any longer in the up move. This would need to be tested. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. COPYRIGHT TRADEGUIDER SYSTEMS. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand.SOW 194: NO DEMAND NOTE: None. This shows lack of selling pressure. It can be a down bar if the high is higher than the previous bar. Future: The next bar should be down to confirm this indicator.SOW 198: NO DEMAND NOTE: None. COPYRIGHT TRADEGUIDER SYSTEMS. Look at the full picture rather than just the individual bar. This indicator works best when there is weakness in the background. In a downtrend this indicator carries more weight. Here you would expect lower prices. 2011 102 . Background: Study the background carefully and look at the trend. or following minor SOS in a downtrend. With strength in the background the indicator alone carries less significance. In an uptrend it may lead to a pause or a small decline back down to support at best. Bar Description: An up bar with volume lower than the two previous bars shows lack of interest as the market rises. Look at the full picture rather than just the individual bar. Future: The next bar should be down to confirm this indicator. COPYRIGHT TRADEGUIDER SYSTEMS.SOW 199: NO DEMAND NOTE: None. Background: Study the background carefully and look at the trend. or following minor SOS in a downtrend. Bar Description: An up bar with volume lower than the two previous bars shows lack of interest as the market rises. In an uptrend it may lead to a pause or a small decline back down to support at best. With strength in the background the indicator alone carries less significance. Here you would expect lower prices. In a downtrend this indicator carries more weight. 2011 103 . This indicator works best when there is weakness in the background. 2011 104 . GLOSSARY PART 2: SIGNS OF STRENGTH COPYRIGHT TRADEGUIDER SYSTEMS. Future: The next bar should be up to confirm this indicator. Background: Study the background carefully and look at the trend. Look at the full picture rather than just the individual bar. COPYRIGHT TRADEGUIDER SYSTEMS.SOS 199: NO SUPPLY NOTE: None. With weakness in the background the indicator alone carries less significance. Here you would expect higher prices. This indicator works best when there is strength in the background. or following minor SOW in an uptrend. In a downtrend it may lead to a pause or a small rally back up to resistance at best. 2011 105 . In an uptrend this indicator carries more weight. Bar Description: A down bar with volume lower than the two previous bars shows lack of selling pressure as the market falls. SOS 198: NO SUPPLY NOTE: None. Bar Description: A down bar with volume lower than the two previous bars shows lack of selling pressure as the market falls. Look at the full picture rather than just the individual bar. In a downtrend it may lead to a pause or a small rally back up to resistance at best. With weakness in the background the indicator alone carries less significance. or following minor SOW in an uptrend. Here you would expect higher prices. Background: Study the background carefully and look at the trend. COPYRIGHT TRADEGUIDER SYSTEMS. 2011 106 . In an uptrend this indicator carries more weight. This indicator works best when there is strength in the background. Future: The next bar should be up to confirm this indicator. With strength in the background give this indicator more weight. On its own it may not be sufficient to lead to a rally especially if you are in a down trend. Future: The next bar should be up to confirm this indicator. Remember strength. Always remember to look at the whole picture and not the last few bars. 2011 107 . There may still need to be shakeouts and testing to remove any further supply. If you see low volume up bars especially on a narrow spread or high volume up bars closing in the middle or low this confirms the weakness. The bar has noticed some buying entering the market. With weakness in the background there may well be too much supply for a rally to take place. COPYRIGHT TRADEGUIDER SYSTEMS. Bar Description: This indicator is trying to pick up subtle changes in the balance of supply and demand. Background: Look for other signs of strength in the immediate background to support this indicator. when it appears will be on a down bar.SOS 147: DEMAND OVERCOMING SUPPLY NOTE: None. If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Be cautious if the test is followed by low volume up bars. Future: Following a test expect higher prices. COPYRIGHT TRADEGUIDER SYSTEMS. 2011 108 . Failure to do so is a sign that the market is not yet ready to go up. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market).SOS 146: TEST NOTE: None. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. Background: The background is extremely important. upthrusts or high volume up bars closing in the middle especially on a narrow spread. Tests work best when there is strength in the background or following minor SOW in an uptrend. Remember you need to look at the overall picture not just the individual bars. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. Supply appearing after an up move is often tested. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. Remember you need to look at the overall picture not just the individual bars. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Future: Following a test expect higher prices. If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. COPYRIGHT TRADEGUIDER SYSTEMS. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. upthrusts or high volume up bars closing in the middle especially on a narrow spread. Supply appearing after an up move is often tested. 2011 109 . Failure to do so is a sign that the market is not yet ready to go up. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Tests work best when there is strength in the background or following minor SOW in an uptrend.SOS 144: TEST NOTE: None. Be cautious if the test is followed by low volume up bars. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. Background: The background is extremely important. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. Failure to do so is a sign that the market is not yet ready to go up. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). Future: Following a test expect higher prices. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. 2011 110 . Tests work best when there is strength in the background or following minor SOW in an uptrend. Supply appearing after an up move is often tested.With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. Background: The background is extremely important. upthrusts or high volume up bars closing in the middle especially on a narrow spread. Be cautious if the test is followed by low volume up bars. COPYRIGHT TRADEGUIDER SYSTEMS. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Remember you need to look at the overall picture not just the individual bars. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar.SOS 143: TEST NOTE: None. Covering shorts will add to the volume. One or more professional groups will have decided that the underlying market is now good value and will step in and buy absorbing the supply. COPYRIGHT TRADEGUIDER SYSTEMS. The market may need to accumulate further before an up move can begin so be patient. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. Weak holders will eventually panic and sell out regardless of the price offering the professionals the opportunity to acquire holdings at a good price. An ideal test is back into the area of the stopping volume. If volume on the shakeout is high expect testing at a later date. A market will not rally far until the professionals have checked to see if this supply has disappeared. This has to be done on down bars so as not to move prices against them. Shakeouts are usually on a wide spread down closing near the highs. upthrusts especially on high volume and no demand. Background: There should be a clear downtrend in place in the background. Bar Description: A down bar with high to ultra high volume must contain buying from the professionals especially if it is into new fresh low ground and the next bar is up. Study the background carefully. Remember this indicator picks up demand coming in but there is still supply present. Covering of shorts will add to the volume. This sends a message to weak holders to show their hand.SOS 137: POTENTIAL CLIMACTIC ACTION NOTE: None. Only buying by the professionals can stop a down move. Future: The next bar should be up to confirm this indicator. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. The professionals do this by selling small amounts of their holdings to push prices back down to the lows. overall they are buying more than they are selling. 2011 111 . If volume is low this becomes a test like bar and shows supply has disappeared. The low volume suggests the supply has disappeared. This they do with shakeouts and testing. However. The bar should close well off the lows to show demand has absorbed the supply. Future: The next bar should be up to confirm the indicator. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. An ideal test is back into the area of the stopping volume. Weak holders will eventually panic and sell out regardless of the price offering the professionals the opportunity to acquire holdings at a good price. The low volume suggests the supply has disappeared. However. 2011 112 . The bar should be into fresh new low ground. Panic selling from those traders on the wrong side of the market is absorbed by the market makers who now find prices attractive. This sends a message to weak holders to show their hand. Background: There should be a down move behind you. The market may need to accumulate further before an up move can begin so be patient. Remember this indicator picks up demand coming in but there is still supply present. If volume is low this becomes a test like bar and shows supply has disappeared. The professionals do this by selling small amounts of their holdings to push prices back down to the lows on bad news days. This they do with shakeouts and testing. Shakeouts are usually on a wide spread down closing near the highs.SOS 135: POTENTIAL STOPPING VOLUME NOTE: None. Study the background carefully. A market will not rally far until the professionals have checked to see if this supply has disappeared. COPYRIGHT TRADEGUIDER SYSTEMS. Remember the professionals have to buy on down bars and will also cover shorts which adds to the volume. overall they are buying more than they are selling. upthrusts especially on high volume and no demand. If volume on the shakeout is high expect testing at a later date. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. Bar Description: This should be a down bar on volume greater than the last few bars which can be gapped down often on bad news. Failure to do so is a sign that the market is not yet ready to go up. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move.. If the supply is sufficient to stop the up move expect any subsequent no supply bar to fail which in itself is a sign of weakness. If you are in an uptrend and the no supply follows some minor signs of weakness you would anticipate the up move to continue. Supply appearing after an up move is often tested. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. Be cautious if the no supply bar is followed by low volume down bars. upthrusts or high volume up bars closing in the middle especially on a narrow spread. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market).SOS 134: NO SUPPLY/TEST NOTE: None. Remember you need to look at the overall picture not just the individual bars. No supply works best when there is strength in the background or following minor SOW in an uptrend. If there is strength in the background and the no supply bar is back down into the area of buying this is a strong indication of strength showing supply has disappeared. Bar Description: This is a test like bar with a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. 2011 113 . Background: The background is extremely important. Future: Following no supply expect higher prices provided there is strength in the background. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. COPYRIGHT TRADEGUIDER SYSTEMS. If volume is high. Remember you need to look at the overall picture not just the individual bars. Do you have strength. If so. add more strength if the news is very bad. As they panic the professionals will absorb these at cheap prices.If volume was high on this bar it may be the start of accumulation so be patient as the market may not yet be ready to go up. minor SOW or has supply hit the market? If there is weakness in the background those who bought at a higher price (weak holders) reach a point where they will dump their holdings at a loss just to recover whatever money they can. When the price spread is very wide and volume is very high this can be stopping volume or climactic action which may mark the low of the market. Look for shakeouts and testing once the professionals have finished their buying. you would expect higher prices. Be cautious if you now see weak bars. Future: The next bar should be up to confirm this indicator. Volume should be high to ultra high. If volume was low on this bar this may be a test of supply in the background. If the volume is low this is also strength because there is little or no selling pressure. Background: The background is extremely important. 2011 114 . Failure to do so is a sign that the market is not yet ready to go up.SOS 133: STRENGTH COMING IN NOTE: None. COPYRIGHT TRADEGUIDER SYSTEMS. The professionals are prepared to absorb the supply. Bar Description: This indicator is a more general SOS which can appear in a number of forms A down bar closing in the middle or high must be considered a strong SOS especially if you are into new low ground. or high volume up bars closing in the middle especially on a narrow spread. Background: There should be a period of falling prices before this indicator occurs. If the low of the up bar is lower than the previous low this also adds to the strength. If volume on the up leg of the bottom reversal is low this can be a type of 'test' in itself. If the low of the first bar is into fresh new low ground and volume is high or greater this can be climactic action. Add more weight if volume is higher on the down bar. COPYRIGHT TRADEGUIDER SYSTEMS. There comes a point when the herd will panic and sell usually on bad news. Only then can the market turn bullish. This suggests a lot of supply and you would expect that supply to be tested.. No market can rally far with supply present. which all indicate weakness. Future: Remember although buying has appeared there is still a lot of supply. Bar Description: The first bar is a down bar closing near its low followed by an up bar closing near its high giving the appearance of a bottom reversal. Be very careful if the second bar is up but closes off its highs on high volume. Be very cautious if you now see low volume up bars. Expect shakeouts to remove the remaining weak holders followed by testing to ensure supply has disappeared. If the professionals now decide the price levels are attractive they will step in and absorb that selling creating the high volume.SOS 132: TWO BAR REVERSAL NOTE: This indicator is based upon the action of two bars. 2011 115 . This they do with shakeouts and testing. Shakeouts are usually on a wide spread down closing near the highs. The professionals do this by selling small amounts of their holdings to push prices back down to the lows on bad news days. Bar Description: This should be a down bar on volume greater than the last few bars which can be gapped down often on bad news. 2011 116 . Background: There should be a down move behind you. A market will not rally far until the professionals have checked to see if this supply has disappeared. The bar should close well off the lows to show demand has absorbed the supply. If volume is low this becomes a test like bar and shows supply has disappeared. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. Remember the professionals have to buy on down bars and will also cover shorts which adds to the volume. If volume on the shakeout is high expect testing at a later date. This sends a message to weak holders to show their hand. The bar should be into fresh new low ground. However. Future: The next bar should be up to confirm the indicator. Study the background carefully. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. Weak holders will eventually panic and sell out regardless of the price offering the professionals the opportunity to acquire holdings at a good price. overall they are buying more than they are selling. upthrusts especially on high volume and no demand. An ideal test is back into the area of the stopping volume. The low volume suggests the supply has disappeared.SOS 131: POTENTIAL STOPPING VOLUME NOTE: None. Remember this indicator picks up demand coming in but there is still supply present. The market may need to accumulate further before an up move can begin so be patient. COPYRIGHT TRADEGUIDER SYSTEMS. Panic selling from those traders on the wrong side of the market is absorbed by the market makers who now find prices attractive. 2011 117 . Covering of shorts will add to the volume. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. Study the background carefully. overall they are buying more than they are selling. An ideal test is back into the area of the stopping volume. This sends a message to weak holders to show their hand. If volume is low this becomes a test like bar and shows supply has disappeared. Only buying by the professionals can stop a down move. Background: There should be a clear downtrend in place in the background. Shakeouts are usually on a wide spread down closing near the highs. This they do with shakeouts and testing. Remember this indicator picks up demand coming in but there is still supply present. COPYRIGHT TRADEGUIDER SYSTEMS. upthrusts especially on high volume and no demand. Bar Description: A down bar with high to ultra high volume must contain buying from the professionals especially if it is into new fresh low ground and the next bar is up. One or more professional groups will have decided that the underlying market is now good value and will step in and buy absorbing the supply. The professionals do this by selling small amounts of their holdings to push prices back down to the lows. Covering shorts will add to the volume. However. A market will not rally far until the professionals have checked to see if this supply has disappeared.SOS 129: POTENTIAL CLIMACTIC ACTION NOTE: None. The market may need to accumulate further before an up move can begin so be patient. If volume on the shakeout is high expect testing at a later date. Weak holders will eventually panic and sell out regardless of price offering the professionals the opportunity to acquire holdings at a good price. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. Future: The next bar should be up to confirm this indicator. This has to be done on down bars so as not to move prices against them. The low volume suggests the supply has disappeared. upthrusts especially on high volume and no demand. The bar should be into fresh new low ground. An ideal test is back into the area of the stopping volume. Remember the professionals have to buy on down bars and will also cover shorts which adds to the volume. Shakeouts are usually on a wide spread down closing near the highs. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. Bar Description: This should be a down bar on volume greater than the last few bars which can be gapped down often on bad news. This sends a message to weak holders to show their hand. A market will not rally far until the professionals have checked to see if this supply has disappeared. Background: There should be a down move behind you. overall they are buying more than they are selling.SOS 127: POTENTIAL STOPPING VOLUME NOTE: None. Panic selling from those traders on the wrong side of the market is absorbed by the market makers who now find prices attractive. Study the background carefully. If volume on the shakeout is high expect testing at a later date. Future: The next bar should be up to confirm the indicator. The market may need to accumulate further before an up move can begin so be patient. The low volume suggests the supply has disappeared. However. The professionals do this by selling small amounts of their holdings to push prices back down to the lows on bad news days. If volume is low this becomes a test like bar and shows supply has disappeared. The bar should close well off the lows to show demand has absorbed the supply. 2011 118 . Remember this indicator picks up demand coming in but there is still supply present. This they do with shakeouts and testing. COPYRIGHT TRADEGUIDER SYSTEMS. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. Weak holders will eventually panic and sell out regardless of the price offering the professionals the opportunity to acquire holdings at a good price. 2011 119 . If volume is low this becomes a test like bar and shows supply has disappeared. The professionals do this by selling small amounts of their holdings to push prices back down to the lows. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. Study the background carefully. Covering shorts will add to the volume. Covering of shorts will add to the volume. An ideal test is back into the area of the stopping volume. Remember this indicator picks up demand coming in but there is still supply present. This they do with shakeouts and testing. The market may need to accumulate further before an up move can begin so be patient. A market will not rally far until the professionals have checked to see if this supply has disappeared. This has to be done on down bars so as not to move prices against them. upthrusts especially on high volume and no demand.SOS 124: POTENTIAL CLIMACTIC ACTION NOTE: None. Only buying by the professionals can stop a down move. COPYRIGHT TRADEGUIDER SYSTEMS. However. If volume on the shakeout is high expect testing at a later date. This sends a message to weak holders to show their hand. overall they are buying more than they are selling. Bar Description: A down bar with high to ultra high volume must contain buying from the professionals especially if it is into new fresh low ground and the next bar is up. The low volume suggests the supply has disappeared. Shakeouts are usually on a wide spread down closing near the highs. One or more professional groups will have decided that the underlying market is now good value and will step in and buy absorbing the supply. Future: The next bar should be up to confirm this indicator. Weak holders will eventually panic and sell out regardless of the price offering the professionals the chance to acquire holdings at a good price. Background: There should be a clear downtrend in place in the background. upthrusts especially on high volume and no demand. Remember this indicator picks up demand coming in but there is still supply present. COPYRIGHT TRADEGUIDER SYSTEMS. The professionals do this by selling small amounts of their holdings to push prices back down to the lows on bad news days. Panic selling from those traders on the wrong side of the market is absorbed by the market makers who now find prices attractive. If volume is low this becomes a test like bar and shows supply has disappeared. The market may need to accumulate further before an up move can begin so be patient. The low volume suggests the supply has disappeared. This they do with shakeouts and testing. This sends a message to weak holders to show their hand. Study the background carefully. overall they are buying more than they are selling. The bar should be into fresh new low ground. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume.SOS 123: POTENTIAL STOPPING VOLUME NOTE: None. Shakeouts are usually on a wide spread down closing near the highs. The bar should close well off the lows to show demand has absorbed the supply. Weak holders will eventually panic and sell out regardless of the price offering the professionals the opportunity to acquire holdings at a good price. 2011 120 . Future: The next bar should be up to confirm the indicator. A market will not rally far until the professionals have checked to see if this supply has disappeared. Remember the professionals have to buy on down bars and will also cover shorts which adds to the volume. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. If volume on the shakeout is high expect testing at a later date. However. Bar Description: This should be a down bar on volume greater than the last few bars which can be gapped down often on bad news. Background: There should be a down move behind you. An ideal test is back into the area of the stopping volume. The low volume suggests the supply has disappeared. Covering of shorts will add to the volume. Bar Description: A down bar with ultra high volume must contain buying from the professionals especially if it is into new fresh low ground and the following bar is up. This sends a message to weak holders to show their hand. This has to be done on down bars so as not to move prices against them. Future: The next bar should be up to confirm this indicator. Study the background carefully. A market will not rally far until the professionals have checked to see if this supply has disappeared. Only buying by the professionals can stop a down move. This they do with shakeouts and testing. Shakeouts are usually on a wide spread down closing near the highs. Remember this indicator picks up demand coming in but there is still supply present.SOS 122: POTENTIAL PROFESSIONAL BUYING NOTE: None. 2011 121 . Background: There should be a clear downtrend in place in the background. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. Covering shorts will add to the volume. The market may need to accumulate further before an up move can begin so be patient. However. If volume on the shakeout is high expect testing at a later date. An ideal test is back into the area of the stopping volume. overall they are buying more than they are selling. upthrusts especially on high volume and no demand. Weak holders will eventually panic and sell out regardless of the price offering the professionals the opportunity to acquire holdings at a good price. If volume is low this becomes a test like bar and shows supply has disappeared. COPYRIGHT TRADEGUIDER SYSTEMS. One or more professional groups will have decided that the underlying market is now good value and will step in and buy absorbing the supply. The professionals do this by selling small amounts of their holdings to push prices back down to the lows. Are there some minor SOW in an uptrend or has supply hit the market? Future: A shakeout on low volume is really a violent test and has the same effect. or high volume up bars closing in the middle especially on a narrow spread. Exercise caution if the bar has gapped down as this can indicate hidden weakness. If the close of the second bar is higher than the first bar's high this adds to the strength. Background: The background is extremely important. Remember you need to look at the overall picture not just the individual bars. If volume is ultra high this can be climactic action and the start of accumulation. If the spread is narrow it will have less impact. You should see strength in the background with stopping volume or a selling climax. This suggests a lot of supply and you would expect that supply to be tested. Bar Description: A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders. The first has shown strength which has caused interest with the professional traders. COPYRIGHT TRADEGUIDER SYSTEMS. It can often give the appearance of a bottom reversal. Be very careful if the second bar is up but closes off its highs on high volume. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. Any low volume testing back into the area of the shakeout would be a strong SOS. Sometimes this can give the appearance of a bottom reversal. If volume is low then supply has dried up. 2011 122 .SOS 119: SHAKEOUT NOTE: This indicator occurs over 2 bars. This indicator occurs over two bars. the second bar is up which confirms that strength. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move. Be cautious if the shakeout is followed by low volume up bars. It shows supply has disappeared and you would then expect higher prices. A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. Tests work best when there is strength in the background or following minor SOW in an uptrend. upthrusts or high volume up bars closing in the middle especially on a narrow spread. Future: Following a test expect higher prices.SOS 116: TEST NOTE: None. 2011 123 . If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. COPYRIGHT TRADEGUIDER SYSTEMS. Supply appearing after an up move is often tested. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. Background: The background is extremely important. Be cautious if the test is followed by low volume up bars. Failure to do so is a sign that the market is not yet ready to go up. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. Remember you need to look at the overall picture not just the individual bars. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. If the spread is narrow it will have less impact. 2011 124 . Remember you need to look at the overall picture not just the individual bars. Any low volume testing back into the area of the shakeout would be a strong SOS. Sometimes this can give the appearance of a bottom reversal. It can often give the appearance of a bottom reversal. Background: The background is extremely important. COPYRIGHT TRADEGUIDER SYSTEMS. You should see strength in the background with stopping volume or a selling climax. This indicator occurs over two bars. Be cautious if the shakeout is followed by low volume up bars. the second bar is up which confirms that strength. It shows supply has disappeared and you would then expect higher prices. Exercise caution if the bar has gapped down as this can indicate hidden weakness.SOS 113: SHAKEOUT NOTE: This indicator occurs over 2 bars. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. Be very careful if the second bar is up but closes off its highs on high volume. If volume is low then supply has dried up. or high volume up bars closing in the middle especially on a narrow spread. If the close of the second bar is higher than the first bar's high this adds to the strength. The first has shown strength which has caused interest with the professional traders. If volume is ultra high this can be climactic action and the start of accumulation. Are there some minor SOW in an uptrend or has supply hit the market? Future: A shakeout on low volume is really a violent test and has the same effect. Bar Description: A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders. A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move. This suggests a lot of supply and you would expect that supply to be tested. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. upthrusts or high volume up bars closing in the middle especially on a narrow spread. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. COPYRIGHT TRADEGUIDER SYSTEMS. If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). Be cautious if the test is followed by low volume up bars. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply.SOS 112: TEST NOTE: None. Tests work best when there is strength in the background or following minor SOW in an uptrend. Future: Following a test expect higher prices. 2011 125 . Background: The background is extremely important. Supply appearing after an up move is often tested. Failure to do so is a sign that the market is not yet ready to go up. Remember you need to look at the overall picture not just the individual bars. SOS 107: TEST NOTE: None. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. Sometimes this indicator appears as a shakeout, which is a mark down but on a wide spread closing up near the high to shake out weak holders. If volume is low then supply has dried up. High volume suggests demand overcame the supply. If the spread is narrow it will have less impact. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. Background: The background is extremely important. Tests work best when there is strength in the background or following minor SOW in an uptrend. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. Future: Following a test expect higher prices. Failure to do so is a sign that the market is not yet ready to go up. A high volume test/shakeout may need to be re-‐ tested. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. Supply appearing after an up move is often tested. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. Be cautious if the test or shakeout is followed by low volume up bars, upthrusts or high volume up bars closing in the middle especially on a narrow spread. Remember you need to look at the overall picture not just the individual bars. COPYRIGHT TRADEGUIDER SYSTEMS, 2011 126 SOS 106 SHAKEOUT NOTE: This indicator occurs over 2 bars. Bar Description: A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders. If volume is low then supply has dried up. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. If the spread is narrow it will have less impact. Exercise caution if the bar has gapped down as this can indicate hidden weakness. If volume is ultra high this can be climactic action and the start of accumulation. This indicator occurs over two bars. The first has shown strength which has caused interest with the professional traders, the second bar is up which confirms that strength. Be very careful if the second bar is up but closes off its highs on high volume. This suggests a lot of supply and you would expect that supply to be tested. If the close of the second bar is higher than the first bar's high this adds to the strength. It can often give the appearance of a bottom reversal. Background: The background is extremely important. You should see strength in the background with stopping volume or a selling climax. Are there some minor SOW in an uptrend or has supply hit the market? Future: A shakeout on low volume is really a violent test and has the same effect. It shows supply has disappeared and you would then expect higher prices. A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future. Any low volume testing back into the area of the shakeout would be a strong SOS. Be cautious if the shakeout is followed by low volume up bars, or high volume up bars closing in the middle especially on a narrow spread. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move. Remember you need to look at the overall picture not just the individual bars. COPYRIGHT TRADEGUIDER SYSTEMS, 2011 127 SOS 102: POTENTIAL CLIMACTIC ACTION NOTE: None. Bar Description: A down bar with high to ultra high volume must contain buying from the professionals especially if it is into new fresh low ground and the next bar is up. One or more professional groups will have decided that the underlying market is now good value and will step in and buy absorbing the supply. Covering of shorts will add to the volume. Background: There should be a clear downtrend in place in the background. Weak holders will eventually panic and sell out regardless of the price offering the professionals the opportunity to acquire holdings at a good price. Only buying by the professionals can stop a down move. Covering shorts will add to the volume. This has to be done on down bars so as not to move prices against them. Study the background carefully. Future: The next bar should be up to confirm this indicator. The market may need to accumulate further before an up move can begin so be patient. The professionals do this by selling small amounts of their holdings to push prices back down to the lows. However, overall they are buying more than they are selling. Remember this indicator picks up demand coming in but there is still supply present. A market will not rally far until the professionals have checked to see if this supply has disappeared. This they do with shakeouts and testing. Shakeouts are usually on a wide spread down closing near the highs. If volume is low this becomes a test like bar and shows supply has disappeared. If volume on the shakeout is high expect testing at a later date. An ideal test is back into the area of the stopping volume. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. This sends a message to weak holders to show their hand. The low volume suggests the supply has disappeared. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down, upthrusts especially on high volume and no demand. COPYRIGHT TRADEGUIDER SYSTEMS, 2011 128 Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. The first being a down bar on high volume closing on the lows with the second bar up. upthrusts especially on high volume and no demand. The professionals do this by selling small amounts of their holdings to push prices back down to the lows on bad news days. Background: There should be a down move behind you. The low volume suggests the supply has disappeared. This sends a message to weak holders to show their hand. The first bar should be into fresh new low ground. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. Study the background carefully. Weak holders will eventually panic and sell out regardless of the price offering the professionals the opportunity to acquire holdings at a good price. Future: The next bar should be up to confirm the indicator but proceed with caution if volume is less than the two previous bars. This they do with shakeouts and testing. Bar Description: This should be a down bar on volume greater than the last few bars which can be gapped down often on bad news. An ideal test is back into the area of the stopping volume. Panic selling from traders on the wrong side of the market is absorbed by the market makers who now find prices attractive. The bar should close well off the lows to show demand has absorbed the supply. This type of stopping volume appears over two bars. If volume is low this becomes a test like bar and shows supply has disappeared. The professionals have to buy on down bars and will also cover shorts which adds to the volume. The market may need to accumulate further before an up move can begin so be patient. This suggests a lot of supply and you would expect that supply to be tested. If the second bar is up but closes off its highs on high volume.SOS 101: STOPPING VOLUME NOTE: This indicator is based upon the action of 2 bars. Shakeouts are usually on a wide spread down closing near the highs. If volume on the shakeout is high expect testing at a later date. A market will not rally far until the professionals have checked to see if this supply has disappeared. 2011 129 . overall they are buying more than they are selling. This indicator picks up demand coming in but there is still supply present. However. COPYRIGHT TRADEGUIDER SYSTEMS. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. The low volume suggests the supply has disappeared. The professionals do this by selling small amounts of their holdings to push prices back down to the lows on bad news days. Panic selling from those traders on the wrong side of the market is absorbed by the market makers who now find prices attractive. If volume is low this becomes a test like bar and shows supply has disappeared. Buyers hesitate feeling they have missed the up move and are vulnerable to being sucked in at higher prices. However. If volume on the down bar is ultra high this can be climactic action. This type of stopping volume appears over two bars. upthrusts especially on high volume and no demand. The first being a down bar with the second bar up on a wide spread and ideally closing above the high of the first bar.Be very careful if the second bar is up but closes off its highs on high volume. Remember the professionals have to buy on down bars. Remember this indicator picks up demand coming in but there is still supply present. Future: The market may need to accumulate further before an up move can begin so be patient. Study the background carefully. This they do with shakeouts and testing. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. A market will not rally far until the professionals have checked to see if this supply has disappeared. An ideal test is back into the area of the stopping volume. If volume on the shakeout is high expect testing at a later date. This suggests a lot of supply and you would expect that supply to be tested.SOS 99 REVERSAL OVER 2 BARS NOTE: This indicator is based upon the action of 2 bars. This is designed to lock traders out of the market by a rapid up move. Weak holders will eventually panic and sell out regardless of the price offering the professionals the opportunity to acquire holdings at a good price. Background: There should be a down move behind you. Shakeouts are usually on a wide spread down closing near the highs. Those short on the down bar now have to cover their positions at a loss. COPYRIGHT TRADEGUIDER SYSTEMS. 2011 130 . This sends a message to weak holders to show their hand. Bar Description: The first bar should be down into fresh new low ground. overall they are buying more than they are selling. Future: Remember although buying has appeared there is still a lot of supply. If the low of the first bar is into fresh new low ground and volume is high or greater this can be climactic action. If volume on the up leg of the bottom reversal is low this can be a type of 'test' in itself. 2011 131 . Expect shakeouts to remove the remaining weak holders followed by testing to ensure supply has disappeared. which all indicate weakness. This suggests a lot of supply and you would expect that supply to be tested. Background: There should be a period of falling prices before this indicator occurs. or high volume up bars closing in the middle especially on a narrow spread. If the professionals now decide the price levels are attractive they will step in and absorb that selling creating the high volume.SOS 97: BOTTOM REVERSAL NOTE: This indicator is based upon the action of two bars. Add more weight if volume is higher on the down bar. Be very cautious if you now see low volume up bars. COPYRIGHT TRADEGUIDER SYSTEMS. Bar Description: The first bar is a down bar closing near its low followed by an up bar closing near its high giving the appearance of a bottom reversal. Only then can the market turn bullish. Be very careful if the second bar is up but closes off its highs on high volume. There comes a point when the herd will panic and sell usually on bad news. No market can rally far with supply present. If the low of the up bar is lower than the previous low this also adds to the strength. SOS 96: TEST NOTE: None. COPYRIGHT TRADEGUIDER SYSTEMS. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. upthrusts or high volume up bars closing in the middle especially on a narrow spread. Supply appearing after an up move is often tested. There needs to be buying by the professional groups. Future: Following a test expect higher prices. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. Be cautious if the test or shakeout is followed by low volume up bars. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. Remember you need to look at the overall picture not just the individual bars. If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. The background is important because the market cannot rally without a cause. Background: There should be support in the background or the market has been marked down with little selling pressure. This indicator is showing support has entered the market and it has been marked down with little supply present. 2011 132 . This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Tests work best when there is strength in the background or following minor SOW in an uptrend. Failure to do so is a sign that the market is not yet ready to go up. Background: This indicator should take place after a market fall and mostly happens on market lows. It works better when volume is higher on the down bar. Also add strength if the low of the first bar is down into fresh new low ground. Be very cautious if you now see low volume up bars. Your skill as a trader/investor has to decide if volume on the down bar is sufficient to give cause to an up move. This suggests a lot of supply and you would expect that supply to be tested. COPYRIGHT TRADEGUIDER SYSTEMS. Only then can the market turn bullish. or high volume up bars closing in the middle especially on a narrow spread. which all indicate weakness. Be very careful if the second bar is up but closes off its highs on high volume. Future: Remember that although buying has appeared there may still be a lot of supply. This can give the appearance of a bottom reversal or a test over two bars. No market can rally far with supply present.SOS 94: 2 BAR REVERSAL NOTE: This indicator is based upon the action of two bars. 2011 133 . Bar Description: The first bar is marked down sharply with the second bar up and closing near its high. If the volume on the up leg of the reversal is low this can be a type of 'test' in itself. Expect shakeouts to remove the remaining weak holders followed by testing to ensure supply has disappeared. It is designed to shake you out of the market and catch stops. Background: There should be a clear down move in the background. This they do with shakeouts and testing. If volume on the shakeout is high expect testing at a later date. If they find prices attractive they will absorb panic selling from those traders on the wrong side of the market. Bar Description: A down bar with high to ultra high volume must contain buying from the professionals especially if it is into new fresh low ground and the next bar is up. An ideal test is back into the area of the stopping volume. The market may need to accumulate further before an up move can begin so be patient. overall they are buying more than they are selling. Shakeouts are usually on a wide spread down closing near the highs. As the weak holders panic only buying by the professionals can absorb their selling and stop a down move. The low volume suggests the supply has disappeared. Future: The next bar should be up to confirm this indicator. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. If volume is low this becomes a test like bar and shows supply has disappeared. The professionals do this by selling small amounts of their holdings to push prices back down to the lows on bad news days. A market will not rally far until the professionals have checked to see if this supply has disappeared. Covering of shorts will add to the volume. This has to be done on down bars so as not to move prices against them. Remember the professionals have to buy on down bars. 2011 134 . The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. COPYRIGHT TRADEGUIDER SYSTEMS. However. This sends a message to weak holders to show their hand. upthrusts especially on high volume and no demand. Remember this indicator picks up demand coming in but there is still supply present.SOS 91: POTENTIAL STOPPING VOLUME/CLIMACTIC ACTION NOTE: None. Study the background carefully. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar.SOS 89: TEST/SHAKEOUT NOTE: None. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. Sometimes this indicator appears as a shakeout. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. 2011 135 . Future: Following a test expect higher prices. If the spread is narrow it will have less impact. which is a mark down but on a wide spread closing up near the high to shake out weak holders. A high volume test/shakeout may need to be re-‐ tested. Remember you need to look at the overall picture not just the individual bars. upthrusts or high volume up bars closing in the middle especially on a narrow spread. Failure to do so is a sign that the market is not yet ready to go up. Background: The background is extremely important. Supply appearing after an up move is often tested. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). COPYRIGHT TRADEGUIDER SYSTEMS. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. If volume is low then supply has dried up. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. High volume suggests demand overcame the supply. Be cautious if the test or shakeout is followed by low volume up bars. Tests work best when there is strength in the background or following minor SOW in an uptrend. Background: The background is extremely important. You should see strength in the background with stopping volume or a selling climax. Bar Description: A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders. Be cautious if the shakeout is followed by low volume up bars. If volume is low then supply has dried up. If volume is ultra high this can be climactic action and the start of accumulation. Are there some minor SOW in an uptrend or has supply hit the market? Future: A shakeout on low volume is really a violent test and has the same effect. Any low volume testing back into the area of the shakeout would be a strong SOS. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move. 2011 136 . A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future.SOS 87: SHAKEOUT NOTE: None. It shows supply has disappeared and you would then expect higher prices. Remember you need to look at the overall picture not just the individual bars. This particular signal is more general and does not need to close near the high of the bar. Exercise caution if the bar has gapped down as this can indicate hidden weakness. COPYRIGHT TRADEGUIDER SYSTEMS. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. or high volume up bars closing in the middle especially on a narrow spread. If the spread is narrow it will have less impact. Future: Following no supply expect higher prices provided there is strength in the background. If you are in an uptrend and the no supply follows some minor signs of weakness you would anticipate the up move to continue. Bar Description: This is a test like bar with a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell.SOS 86 NO SUPPLY/TEST NOTE: None. Remember you need to look at the overall picture not just the individual bars. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there.. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. Failure to do so is a sign that the market is not yet ready to go up. Supply appearing after an up move is often tested. If there is strength in the background and the no supply bar is back down into the area of buying this is a strong indication of strength showing supply has disappeared. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Background: The background is extremely important. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). upthrusts or high volume up bars closing in the middle especially on a narrow spread. If the supply is sufficient to stop the up move expect any subsequent no supply bar to fail which in itself is a sign of weakness. No supply works best when there is strength in the background or following minor SOW in an uptrend. Be cautious if the no supply bar is followed by low volume down bars. COPYRIGHT TRADEGUIDER SYSTEMS. 2011 137 . Tests work best when there is strength in the background or following minor SOW in an uptrend.SOS 85: TEST AFTER SHAKEOUT NOTE: None. If the news was bad and volume was high this can appear as a shakeout. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. COPYRIGHT TRADEGUIDER SYSTEMS. If the bar appeared as a selling climax expect future shakeouts and testing. If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. 2011 138 . If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Supply appearing after an up move is often tested. Future: Following a test expect higher prices. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. upthrusts or high volume up bars closing in the middle especially on a narrow spread. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. Failure to do so is a sign that the market is not yet ready to go up. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. or even a selling climax which would mark the start of accumulation. Background: The background is extremely important. Be cautious if the test is followed by low volume up bars. COPYRIGHT TRADEGUIDER SYSTEMS. Covering shorts will add to the volume. The low volume suggests the supply has disappeared. One or more professional groups will have decided that the underlying market is now good value and will step in and buy absorbing the supply. If volume is low this becomes a test like bar and shows supply has disappeared. However. Only buying by the professionals can stop a down move. The market may need to accumulate further before an up move can begin so be patient.SOS 84: POTENTIAL CLIMACTIC ACTION NOTE: None. Background: There should be a clear downtrend in place in the background. Future: The next bar should be up to confirm this indicator. Weak holders will eventually panic and sell out regardless of the price offering the professionals the opportunity to acquire holdings at a good price. Study the background carefully. The professionals do this by selling small amounts of their holdings to push prices back down to the lows. Shakeouts are usually on a wide spread down closing near the highs. If volume on the shakeout is high expect testing at a later date. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. upthrusts especially on high volume and no demand. A market will not rally far until the professionals have checked to see if this supply has disappeared. overall they are buying more than they are selling. Bar Description: A down bar with high to ultra high volume must contain buying from the professionals especially if it is into new fresh low ground and the next bar is up. An ideal test is back into the area of the stopping volume. This sends a message to weak holders to show their hand. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. This has to be done on down bars so as not to move prices against them. Remember this indicator picks up demand coming in but there is still supply present. Covering of shorts will add to the volume. 2011 139 . This they do with shakeouts and testing. COPYRIGHT TRADEGUIDER SYSTEMS. The market may need to accumulate further before an up move can begin so be patient. overall they are buying more than they are selling.SOS 83: POTENTIAL SELLING CLIMAX NOTE: None. Future: The next bar should be up to confirm this indicator. This they do with shakeouts and testing. 2011 140 . A market will not rally far until the professionals have checked to see if this supply has disappeared. Shakeouts are usually on a wide spread down closing near the highs. Weak holders will eventually panic and sell out regardless of the price offering the professionals the opportunity to acquire holdings at a good price. Study the background carefully. If volume is low this becomes a test like bar and shows supply has disappeared. Covering of shorts will add to the volume. One or more professional groups will have decided that the underlying market is now good value and will step in and buy absorbing the supply. Covering shorts will add to the volume. Bar Description: A down bar with high to ultra high volume must contain buying from the professionals especially if it is into new fresh low ground and the next bar is up. This has to be done on down bars so as not to move prices against them. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. upthrusts especially on high volume and no demand. If volume on the shakeout is high expect testing at a later date. Remember this indicator picks up demand coming in but there is still supply present. Only buying by the professionals can stop a down move. This sends a message to weak holders to show their hand. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. An ideal test is back into the area of the stopping volume. Background: There should be a clear downtrend in place in the background. The professionals do this by selling small amounts of their holdings to push prices back down to the lows. However. The low volume suggests the supply has disappeared. This indicator occurs over two bars. Any low volume testing back into the area of the shakeout would be a strong SOS. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move. The first has shown strength which has caused interest with the professional traders. or high volume up bars closing in the middle especially on a narrow spread. If volume is low then supply has dried up. If volume is ultra high this can be climactic action and the start of accumulation. Be very careful if the second bar is up but closes off its highs on high volume. This suggests a lot of supply and you would expect that supply to be tested. Remember you need to look at the overall picture not just the individual bars. If the close of the second bar is higher than the first bar's high this adds to the strength. It can often give the appearance of a bottom reversal. Exercise caution if the bar has gapped down as this can indicate hidden weakness. Be cautious if the shakeout is followed by low volume up bars. COPYRIGHT TRADEGUIDER SYSTEMS. You should see strength in the background with stopping volume or a selling climax. If the spread is narrow it will have less impact. the second bar is up which confirms that strength. 2011 141 . It shows supply has disappeared and you would then expect higher prices. Bar Description: A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders..SOS 82: SHAKEOUT NOTE: This indicator occurs over 2 bars. Background: The background is extremely important. Are there some minor SOW in an uptrend or has supply hit the market? Future: A shakeout on low volume is really a violent test and has the same effect. A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. SOS 81: NO SUPPLY/TEST NOTE: None. Bar Description: This bar has fallen off on low volume and a narrow spread showing a lack of selling pressure at that point. If there is strength in the background and the no supply bar is back down into the area of buying this is a strong indication of strength showing supply has disappeared. Sometimes it may close up on the middle or high which represents a test. COPYRIGHT TRADEGUIDER SYSTEMS. Background: The background is extremely important. Failure to do so is a sign that the market is not yet ready to go up. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. If you are in an uptrend and the no supply follows some minor signs of weakness you would anticipate the up move to continue. If the supply is sufficient to stop the up move expect any subsequent no supply bar to fail which in itself is a sign of weakness. Remember you need to look at the overall picture not just the individual bars. 2011 142 . Supply appearing after an up move is often tested. upthrusts or high volume up bars closing in the middle especially on a narrow spread. Be cautious if the no supply bar is followed by low volume up bars. Future: Following no supply expect higher prices provided there is strength in the background. No supply works best when there is strength in the background or following minor SOW in an uptrend. Bar Description: The first bar is a down bar closing near its low followed by an up bar closing near its high giving the appearance of a bottom reversal. No market can rally far with supply present. If the low of the up bar is lower than the previous low this also adds to the strength. 2011 143 . Be very careful if the second bar is up but closes off its highs on high volume. Be very cautious if you now see low volume up bars. Expect shakeouts to remove the remaining weak holders followed by testing to ensure supply has disappeared. Only then can the market turn bullish. Background: There should be a period of falling prices before this indicator occurs. COPYRIGHT TRADEGUIDER SYSTEMS. Future: Remember although buying has appeared there is still a lot of supply. If volume on the up leg of the bottom reversal is low this can be a type of 'test' in itself. or high volume up bars closing in the middle especially on a narrow spread. If the low of the first bar is into fresh new low ground and volume is high or greater this can be climactic action.SOS 79: BOTTOM REVERSAL NOTE: This indicator is based upon the action of two bars. This suggests a lot of supply and you would expect that supply to be tested. There comes a point when the herd will panic and sell usually on bad news. which all indicate weakness. Add more weight if volume is higher on the down bar. If the professionals now decide the price levels are attractive they will step in and absorb that selling creating the high volume. Only then can the market turn bullish. This suggests a lot of supply and you would expect that supply to be tested. If the professionals now decide the price levels are attractive they will step in and absorb that selling creating the high volume. Be very careful if the second bar is up but closes off its highs on high volume. 2011 144 . No market can rally far with supply present. If the low of the up bar is lower than the previous low this also adds to the strength. Future: Remember although buying has appeared there is still a lot of supply. Add more weight if volume is higher on the down bar. There comes a point when the herd will panic and sell usually on bad news. Background: There should be a period of falling prices before this indicator occurs. or high volume up bars closing in the middle especially on a narrow spread. Be very cautious if you now see low volume up bars. which all indicate weakness. If the low of the first bar is into fresh new low ground and volume is high or greater this can be climactic action. Expect shakeouts to remove the remaining weak holders followed by testing to ensure supply has disappeared. Bar Description: The first bar is a down bar closing near its low followed by an up bar closing near its high giving the appearance of a bottom reversal. COPYRIGHT TRADEGUIDER SYSTEMS. If volume on the up leg of the bottom reversal is low this can be a type of 'test' in itself.SOS 78: BOTTOM REVERSAL NOTE: This indicator is based upon the action of two bars. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). Sometimes this indicator appears as a shakeout. If volume is low then supply has dried up. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared.SOS 77: SIMPLE TEST NOTE: None. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. COPYRIGHT TRADEGUIDER SYSTEMS. which is a mark down but on a wide spread closing up near the high to shake out weak holders. Tests work best when there is strength in the background or following minor SOW in an uptrend. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. Remember you need to look at the overall picture not just the individual bars. A high volume test/shakeout may need to be re-‐ tested. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. If the spread is narrow it will have less impact. Supply appearing after an up move is often tested. Future: Following a test expect higher prices. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Background: The background is extremely important. 2011 145 . Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. upthrusts or high volume up bars closing in the middle especially on a narrow spread. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. Be cautious if the test or shakeout is followed by low volume up bars. High volume suggests demand overcame the supply. Failure to do so is a sign that the market is not yet ready to go up. However. If volume is low this becomes a test like bar and shows supply has disappeared. An ideal test is back into the area of the stopping volume. This sends a message to weak holders to show their hand. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. If volume on the shakeout is high expect testing at a later date. Bar Description: This should be a down bar on volume greater than the last few bars which can be gapped down often on bad news. Study the background carefully. Future: The next bar should be up to confirm the indicator. upthrusts especially on high volume and no demand. Weak holders will eventually panic and sell out regardless of the price offering the professionals the opportunity to acquire holdings at a good price. The low volume suggests the supply has disappeared. overall they are buying more than they are selling. Remember this indicator picks up demand coming in but there is still supply present. The market may need to accumulate further before an up move can begin so be patient. 2011 146 . Remember the professionals have to buy on down bars and will also cover shorts which adds to the volume. This they do with shakeouts and testing. Shakeouts are usually on a wide spread down closing near the highs.SOS: 76 POTENTIAL STOPPING VOLUME NOTE: None. COPYRIGHT TRADEGUIDER SYSTEMS. The bar should be into fresh new low ground. Panic selling from those traders on the wrong side of the market is absorbed by the market makers who now find prices attractive. Background: There should be a down move behind you. A market will not rally far until the professionals have checked to see if this supply has disappeared. The bar should close well off the lows to show demand has absorbed the supply. The professionals do this by selling small amounts of their holdings to push prices back down to the lows on bad news days. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. or high volume up bars closing in the middle especially on a narrow spread. Be cautious if the shakeout is followed by low volume up bars. 2011 147 . A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future. If volume is ultra high this can be climactic action and the start of accumulation in which case a narrow spread adds to the strength if it is into new fresh low ground.SOS 74: POTENTIAL CLIMACTIC ACTION/SHAKEOUT NOTE: None. Remember you need to look at the overall picture not just the individual bars. Exercise caution if the bar has gapped down as this can indicate hidden weakness. Are there some minor SOW in an uptrend or has supply hit the market? Future: The next bar should be up to confirm this indicator. You should see strength in the background with stopping volume or a selling climax.A shakeout on low volume is really a violent test and has the same effect. Bar Description: A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders. If the spread is narrow it will have less impact. It shows supply has disappeared and you would then expect higher prices. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move. Any low volume testing back into the area of the shakeout would be a strong SOS. Background: The background is extremely important. COPYRIGHT TRADEGUIDER SYSTEMS. If the close of the second bar is higher than the first bar's high this adds to the strength. Remember you need to look at the overall picture not just the individual bars. If volume is ultra high this can be climactic action and the start of accumulation. Background: The background is extremely important. The first has shown strength which has caused interest with the professional traders. the second bar is up which confirms that strength. This suggests a lot of supply and you would expect that supply to be tested. Be very careful if the second bar is up but closes off its highs on high volume. If the spread is narrow it will have less impact. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future. Exercise caution if the bar has gapped down as this can indicate hidden weakness. COPYRIGHT TRADEGUIDER SYSTEMS. Sometimes this can give the appearance of a bottom reversal. This indicator occurs over two bars. You should see strength in the background with stopping volume or a selling climax. or high volume up bars closing in the middle especially on a narrow spread. It shows supply has disappeared and you would then expect higher prices. Be cautious if the shakeout is followed by low volume up bars. Bar Description: A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move. If volume is low then supply has dried up. It can often give the appearance of a bottom reversal.SOS 70: SHAKEOUT NOTE: This indicator occurs over 2 bars. 2011 148 . Are there some minor SOW in an uptrend or has supply hit the market? Future: A shakeout on low volume is really a violent test and has the same effect. Any low volume testing back into the area of the shakeout would be a strong SOS. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. or high volume up bars closing in the middle especially on a narrow spread. Bar Description: A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move. It shows supply has disappeared and you would then expect higher prices. Any low volume testing back into the area of the shakeout would be a strong SOS. Be cautious if the shakeout is followed by low volume up bars. If volume is low then supply has dried up. 2011 149 . Exercise caution if the bar has gapped down as this can indicate hidden weakness. If the spread is narrow it will have less impact. COPYRIGHT TRADEGUIDER SYSTEMS. A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future. Remember you need to look at the overall picture not just the individual bars.SOS 63: SHAKEOUT NOTE: None. Are there some minor SOW in an uptrend or has supply hit the market? Future: A shakeout on low volume is really a violent test and has the same effect. Background: The background is extremely important. If volume is ultra high this can be climactic action and the start of accumulation. You should see strength in the background with stopping volume or a selling climax. or high volume up bars closing in the middle especially on a narrow spread. which all indicate weakness. COPYRIGHT TRADEGUIDER SYSTEMS. If the low of the up bar is lower than the previous low this also adds to the strength. Be very careful if the second bar is up but closes off its highs on high volume.SOS 57 TWO BAR REVERSAL NOTE: This indicator is based upon the action of two bars. 2011 150 .. Only then can the market turn bullish. Background: There should be a period of falling prices before this indicator occurs. If volume on the up leg of the bottom reversal is low this can be a type of 'test' in itself. Expect shakeouts to remove the remaining weak holders followed by testing to ensure supply has disappeared. Be very cautious if you now see low volume up bars. This suggests a lot of supply and you would expect that supply to be tested. If the low of the first bar is into fresh new low ground and volume is high or greater this can be climactic action. If the professionals now decide the price levels are attractive they will step in and absorb that selling creating the high volume. Bar Description: The first bar is a down bar closing near its low followed by an up bar closing near its high giving the appearance of a bottom reversal. Future: Remember although buying has appeared there is still a lot of supply. Add more weight if volume is higher on the down bar. There comes a point when the herd will panic and sell usually on bad news. No market can rally far with supply present. SOS 56: SHAKEOUT NOTE: None. You should see strength in the background with stopping volume or a selling climax. COPYRIGHT TRADEGUIDER SYSTEMS. Bar Description: A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders. Remember you need to look at the overall picture not just the individual bars. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move. Are there some minor SOW in an uptrend or has supply hit the market? Future: A shakeout on low volume is really a violent test and has the same effect. Exercise caution if the bar has gapped down as this can indicate hidden weakness. or high volume up bars closing in the middle especially on a narrow spread. A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future. This particular signal is more general and does not need to close near the high of the bar. Be cautious if the shakeout is followed by low volume up bars. Any low volume testing back into the area of the shakeout would be a strong SOS. 2011 151 . If volume is low then supply has dried up. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. If volume is ultra high this can be climactic action and the start of accumulation. Background: The background is extremely important. It shows supply has disappeared and you would then expect higher prices. If the spread is narrow it will have less impact. If the spread is narrow it will have less impact. Any low volume testing back into the area of the shakeout would be a strong SOS. Bar Description: A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders. or high volume up bars closing in the middle especially on a narrow spread. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move.If volume is ultra high this can be climactic action and the start of accumulation. A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future. Remember you need to look at the overall picture not just the individual bars. COPYRIGHT TRADEGUIDER SYSTEMS. Background: The background is extremely important. 2011 152 . Be cautious if the shakeout is followed by low volume up bars. This particular signal is more general and does not need to close near the high of the bar. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. Exercise caution if the bar has gapped down as this can indicate hidden weakness. It shows supply has disappeared and you would then expect higher prices.SOS 54: SHAKEOUT NOTE: None. Are there some minor SOW in an uptrend or has supply hit the market? Future: A shakeout on low volume is really a violent test and has the same effect. You should see strength in the background with stopping volume or a selling climax. If volume is low then supply has dried up. If volume is ultra high this can be climactic action and the start of accumulation in which case a narrow spread adds to the strength if it is into new fresh low ground. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress.. 2011 153 . Are there some minor SOW in an uptrend or has supply hit the market? Future: The next bar should be up to confirm this indicator.SOS 53: POTENTIAL CLIMACTIC ACTION/SHAKEOUT NOTE: None. COPYRIGHT TRADEGUIDER SYSTEMS. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move. Remember you need to look at the overall picture not just the individual bars. It shows supply has disappeared and you would then expect higher prices. Any low volume testing back into the area of the shakeout would be a strong SOS. Be cautious if the shakeout is followed by low volume up bars. If the spread is narrow it will have less impact. or high volume up bars closing in the middle especially on a narrow spread. Exercise caution if the bar has gapped down as this can indicate hidden weakness. Background: The background is extremely important. A shakeout on low volume is really a violent test and has the same effect. Bar Description: A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders. A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future. You should see strength in the background with stopping volume or a selling climax. COPYRIGHT TRADEGUIDER SYSTEMS. Remember you need to look at the overall picture not just the individual bars. Any low volume testing back into the area of the shakeout would be a strong SOS. It shows supply has disappeared and you would then expect higher prices. This indicator occurs over two bars. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move. Bar Description: A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders. or high volume up bars closing in the middle especially on a narrow spread. A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future. Background: The background is extremely important. 2011 154 . Be cautious if the shakeout is followed by low volume up bars. If the spread is narrow it will have less impact. Are there some minor SOW in an uptrend or has supply hit the market? Future: A shakeout on low volume is really a violent test and has the same effect. This suggests a lot of supply and you would expect that supply to be tested. If volume is ultra high this can be climactic action and the start of accumulation in which case a narrow spread adds to the strength if it is into new fresh low ground. The first has shown strength which has caused interest with the professional traders. Be very careful if the second bar is up but closes off its highs on high volume. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. the second bar is up which confirms that strength. You should see strength in the background with stopping volume or a selling climax.SOS 52: CLIMACTIC ACTION/SHAKEOUT NOTE: This indicator occurs over two bars. Exercise caution if the bar has gapped down as this can indicate hidden weakness. Bar Description: A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders. If volume is ultra high this can be climactic action and the start of accumulation. If volume is low then supply has dried up. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move. Background: The background is extremely important. Exercise caution if the bar has gapped down as this can indicate hidden weakness. 2011 155 . This particular signal is more general and does not need to close near the high of the bar. or high volume up bars closing in the middle especially on a narrow spread. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. It shows supply has disappeared and you would then expect higher prices. COPYRIGHT TRADEGUIDER SYSTEMS. You should see strength in the background with stopping volume or a selling climax. Are there some minor SOW in an uptrend or has supply hit the market? Future: A shakeout on low volume is really a violent test and has the same effect. Any low volume testing back into the area of the shakeout would be a strong SOS. Be cautious if the shakeout is followed by low volume up bars. If the spread is narrow it will have less impact. A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future.SOS 51: SHAKEOUT NOTE: None. Remember you need to look at the overall picture not just the individual bars. 2011 156 . COPYRIGHT TRADEGUIDER SYSTEMS. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. Tests work best when there is strength in the background or following minor SOW in an uptrend. upthrusts or high volume up bars closing in the middle especially on a narrow spread. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. Background: The background is extremely important. If the spread is narrow it will have less impact. If volume is low then supply has dried up. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar.SOS 49: TEST OF SUPPLY AFTER SHAKEOUT NOTE: None. High volume suggests demand overcame the supply. Failure to do so is a sign that the market is not yet ready to go up. Be cautious if the test or shakeout is followed by low volume up bars. Supply appearing after an up move is often tested. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. which is a mark down but on a wide spread closing up near the high to shake out weak holders. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Future: Following a test expect higher prices. Sometimes this indicator appears as a shakeout. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Remember you need to look at the overall picture not just the individual bars. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move.SOS 45: SHAKEOUT NOTE: None. It shows supply has disappeared and you would then expect higher prices. Exercise caution if the bar has gapped down as this can indicate hidden weakness. Remember you need to look at the overall picture not just the individual bars. If volume is ultra high this can be climactic action and the start of accumulation. If volume is low then supply has dried up. You should see strength in the background with stopping volume or a selling climax. COPYRIGHT TRADEGUIDER SYSTEMS. Be cautious if the shakeout is followed by low volume up bars. A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future. 2011 157 . Background: The background is extremely important. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. Any low volume testing back into the area of the shakeout would be a strong SOS. If the spread is narrow it will have less impact. Are there some minor SOW in an uptrend or has supply hit the market? Future: A shakeout on low volume is really a violent test and has the same effect. Bar Description: A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders. or high volume up bars closing in the middle especially on a narrow spread. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. 2011 158 . Background: The background is extremely important. This indicator occurs over two bars. Exercise caution if the bar has gapped down as this can indicate hidden weakness. Be very careful if the second bar is up but closes off its highs on high volume. Be cautious if the shakeout is followed by low volume up bars. This suggests a lot of supply and you would expect that supply to be tested. If the close of the second bar is higher than the first bar's high this adds to the strength.SOS 44: SHAKEOUT NOTE: This indicator occurs over two bars. or high volume up bars closing in the middle especially on a narrow spread. If volume is ultra high this can be climactic action and the start of accumulation. Any low volume testing back into the area of the shakeout would be a strong SOS. If the spread is narrow it will have less impact. Bar Description: A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders. Remember you need to look at the overall picture not just the individual bars. Are there some minor SOW in an uptrend or has supply hit the market? Future: A shakeout on low volume is really a violent test and has the same effect. It can often give the appearance of a bottom reversal. COPYRIGHT TRADEGUIDER SYSTEMS. If volume is low then supply has dried up. the second bar is up which confirms that strength. It shows supply has disappeared and you would then expect higher prices. A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future. You should see strength in the background with stopping volume or a selling climax. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move. The first has shown strength which has caused interest with the professional traders. SOS 43: SHAKEOUT NOTE: None. Any low volume testing back into the area of the shakeout would be a strong SOS. Background: The background is extremely important. 2011 159 . or high volume up bars closing in the middle especially on a narrow spread. A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future. Be cautious if the shakeout is followed by low volume up bars. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. Remember you need to look at the overall picture not just the individual bars. It shows supply has disappeared and you would then expect higher prices. If the spread is narrow it will have less impact. COPYRIGHT TRADEGUIDER SYSTEMS. Bar Description: A shakeout is a mark down on a wide spread normally closing up near the high to shake out weak holders. This particular signal is more general and does not need to close near the high of the bar. If volume is ultra high this can be climactic action and the start of accumulation. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move. If volume is low then supply has dried up. Are there some minor SOW in an uptrend or has supply hit the market? Future: A shakeout on low volume is really a violent test and has the same effect. Exercise caution if the bar has gapped down as this can indicate hidden weakness. You should see strength in the background with stopping volume or a selling climax. By its very nature this has to appear on down bars. Background: There should be a clear down trend in the background.SOS 36: BAG HOLDING NOTE: None. This is a rare indicator but one of the strongest to appear. If they had not done this the spread would have been wide. Future: Prices are now expected to rally strongly. Bar Description: A narrow spread down bar with ultra high volume.. It should be into fresh new low ground. COPYRIGHT TRADEGUIDER SYSTEMS. Remember to stop a fall in the market demand has to overcome the supply that is causing that fall. hence the term). A point is reached when the herd panic and unload their holdings at rock bottom prices. 2011 160 . The narrow spread tells you that the professionals absorb all the supply coming onto the market (effectively holding out a 'bag' to collect the panic selling. Any shakeout or successful testing back into the area of the bag holding is a very strong SOS. Exercise caution if the bar has gapped down as this can indicate hidden weakness. Be cautious if the shakeout is followed by low volume up bars. Any low volume testing back into the area of the shakeout would be a strong SOS. 2011 161 . You should see strength in the background with stopping volume or a selling climax. Remember you need to look at the overall picture not just the individual bars. If the spread is narrow it will have less impact. Bar Description: A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders. It shows supply has disappeared and you would expect higher prices. If volume is low then supply has dried up.SOS 34: SHAKEOUT NOTE: None. or high volume up bars closing in the middle especially on a narrow spread. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move. Background: The background is extremely important. Are there some minor SOW in an uptrend or has supply hit the market? Future: A shakeout on low volume is really a violent test and has the same effect. COPYRIGHT TRADEGUIDER SYSTEMS. A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future. If volume is ultra high this can be climactic action and the start of accumulation. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. COPYRIGHT TRADEGUIDER SYSTEMS. Bar Description: A down bar with high to ultra high volume must contain buying from the professionals especially if it is into fresh new low ground and the next bar is up. The professionals do this by selling small amounts of their holdings to push prices back down to the lows. Covering of shorts will add to the volume. If volume on the shakeout is high expect testing at a later date. However. The market may need to accumulate further before an up move can begin so be patient. One or more professional groups will have decided that the underlying market is now good value and will step in and buy absorbing the supply. The low volume suggests the supply has disappeared. Shakeouts are usually on a wide spread down closing near the highs. Background: There should be a clear downtrend in place in the background. Study the background carefully. Remember this indicator picks up demand coming in but there is still supply present. An ideal test is back into the area of the stopping volume. This has to be done on down bars so as not to move prices against them. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. Covering shorts will add to the volume. This they do with shakeouts and testing. Future: The next bar should be up to confirm this indicator. overall they are buying more than they are selling. Only buying by the professionals can stop a down move. Weak holders will eventually panic and sell out regardless of the price offering the professionals the opportunity to acquire holdings at a good price. upthrusts especially on high volume and no demand.SOS 33: POTENTIAL CLIMACTIC ACTION NOTE: None. 2011 162 . This sends a message to weak holders to show their hand. A market will not rally far until the professionals have checked to see if this supply has disappeared. If volume is low this becomes a test like bar and shows supply has disappeared. Background: The background is extremely important. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. If the spread is narrow it will have less impact. Supply appearing after an up move is often tested.SOS 32: TEST NOTE: None. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). A high volume test/shakeout may need to be re-‐ tested. upthrusts or high volume up bars closing in the middle especially on a narrow spread. Future: Following a test expect higher prices. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell.With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. Remember you need to look at the overall picture not just the individual bars. which is a mark down but on a wide spread closing up near the high to shake out weak holders. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. COPYRIGHT TRADEGUIDER SYSTEMS. High volume suggests demand overcame the supply. 2011 163 . Sometimes this indicator appears as a shakeout. If volume is low then supply has dried up. Tests work best when there is strength in the background or following minor SOW in an uptrend. Be cautious if the test or shakeout is followed by low volume up bars. Failure to do so is a sign that the market is not yet ready to go up. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. This indicator is usually testing high volume in the recent background.SOS 30: TEST IN A RISING MARKET NOTE: None. Be cautious if the test or shakeout is followed by low volume up bars. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). Future: Following a test expect higher prices. Sometimes this indicator appears as a shakeout. If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. COPYRIGHT TRADEGUIDER SYSTEMS. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. If the spread is narrow it will have less impact. Supply appearing after an up move is often tested. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. Add extra weight if it is a down bar. 2011 164 . If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. which is a mark down but on a wide spread closing up near the high to shake out weak holders. upthrusts or high volume up bars closing in the middle especially on a narrow spread. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Background: The background is extremely important. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. If volume is low then supply has dried up. Failure to do so is a sign that the market is not yet ready to go up. High volume suggests demand overcame the supply. Tests work best when there is strength in the background or following minor SOW in an uptrend. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. Remember you need to look at the overall picture not just the individual bars. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. Supply appearing after an up move is often tested. Add extra weight if it is a down bar. Future: Following a test expect higher prices. It is a test in a rising market.. 2011 165 . The test may well fail if the breakout proves to be false.SOS 29: TEST OF BREAKOUT NOTE: None. It may also show the breakout to be false. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. upthrusts or high volume up bars closing in the middle especially on a narrow spread. Background: The background is extremely important. COPYRIGHT TRADEGUIDER SYSTEMS. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. Be cautious if the test or shakeout is followed by low volume up bars.The previous bar should be a breakout from a recent trading range. Failure to do so is a sign that the market is not yet ready to go up. Tests work best when there is strength in the background or following minor SOW in an uptrend. Remember you need to look at the overall picture not just the individual bars. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. This indicator follows a breakout from a trading range. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. SOS 28: TEST NOTE: None. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. Sometimes this indicator appears as a shakeout, which is a mark down but on a wide spread closing up near the high to shake out weak holders. If volume is low then supply has dried up. High volume suggests demand overcame the supply. If the spread is narrow it will have less impact. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. Background: The background is extremely important. Tests work best when there is strength in the background or following minor SOW in an uptrend. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. Future: Following a test expect higher prices. Failure to do so is a sign that the market is not yet ready to go up. A high volume test/shakeout may need to be re-‐ tested. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. Supply appearing after an up move is often tested. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. Be cautious if the test or shakeout is followed by low volume up bars, upthrusts or high volume up bars closing in the middle especially on a narrow spread. Remember you need to look at the overall picture not just the individual bars. COPYRIGHT TRADEGUIDER SYSTEMS, 2011 166 SOS 23: TEST NOTE: None. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. Sometimes this indicator appears as a shakeout, which is a mark down but on a wide spread closing up near the high to shake out weak holders. If volume is low then supply has dried up. High volume suggests demand overcame the supply. If the spread is narrow it will have less impact. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. Background: The background is extremely important. Tests work best when there is strength in the background or following minor SOW in an uptrend. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. Future: Following a test expect higher prices. Failure to do so is a sign that the market is not yet ready to go up. A high volume test/shakeout may need to be re-‐ tested. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. Supply appearing after an up move is often tested. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. Be cautious if the test or shakeout is followed by low volume up bars, upthrusts or high volume up bars closing in the middle especially on a narrow spread. Remember you need to look at the overall picture not just the individual bars. COPYRIGHT TRADEGUIDER SYSTEMS, 2011 167 SOS 22: BASIC TEST NOTE: None. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. Sometimes this indicator appears as a shakeout, which is a mark down but on a wide spread closing up near the high to shake out weak holders. If volume is low then supply has dried up. High volume suggests demand overcame the supply. If the spread is narrow it will have less impact. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. Background: The background is extremely important. Tests work best when there is strength in the background or following minor SOW in an uptrend. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. Future: Following a test expect higher prices. Failure to do so is a sign that the market is not yet ready to go up. A high volume test/shakeout may need to be re-‐ tested. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. Supply appearing after an up move is often tested. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. Be cautious if the test or shakeout is followed by low volume up bars, upthrusts or high volume up bars closing in the middle especially on a narrow spread. Remember you need to look at the overall picture not just the individual bars. COPYRIGHT TRADEGUIDER SYSTEMS, 2011 168 Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. Tests work best when there is strength in the background or following minor SOW in an uptrend. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). upthrusts or high volume up bars closing in the middle especially on a narrow spread. Supply appearing after an up move is often tested. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. If volume is low then supply has dried up. Failure to do so is a sign that the market is not yet ready to go up. High volume suggests demand overcame the supply. Remember you need to look at the overall picture not just the individual bars. A high volume test/shakeout may need to be re-‐ tested. Future: Following a test expect higher prices. Sometimes this indicator appears as a shakeout. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. Be cautious if the test or shakeout is followed by low volume up bars. 2011 169 . If the spread is narrow it will have less impact. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply.SOS 21 SIMPLE TEST NOTE: None. which is a mark down but on a wide spread closing up near the high to shake out weak holders. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. COPYRIGHT TRADEGUIDER SYSTEMS. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Background: The background is extremely important. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. Tests work best when there is strength in the background or following minor SOW in an uptrend. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). upthrusts or high volume up bars closing in the middle especially on a narrow spread. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. COPYRIGHT TRADEGUIDER SYSTEMS. Future: Following a test expect higher prices. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. Supply appearing after an up move is often tested. 2011 170 . If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Failure to do so is a sign that the market is not yet ready to go up. Remember you need to look at the overall picture not just the individual bars.SOS 19: TEST AFTER UPTHRUST NOTE: None. Background: The background is extremely important. This particular indicator occurs after a recent upthrust. Be cautious if the test is followed by low volume up bars. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. Future: Following a test expect higher prices. Failure to do so is a sign that the market is not yet ready to go up. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. If the bar appeared as a selling climax expect future shakeouts and testing. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. Background: The background is extremely important. upthrusts or high volume up bars closing in the middle especially on a narrow spread. Supply appearing after an up move is often tested. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. COPYRIGHT TRADEGUIDER SYSTEMS. Be cautious if the test is followed by low volume up bars. If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. or even a selling climax which would mark the start of accumulation. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Tests work best when there is strength in the background or following minor SOW in an uptrend.SOS 16: TEST AFTER SHAKEOUT NOTE: None. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. If the news was bad and volume was high this can appear as a shakeout. 2011 171 . With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). COPYRIGHT TRADEGUIDER SYSTEMS. Failure to do so is a sign that the market is not yet ready to go up. upthrusts or high volume up bars closing in the middle especially on a narrow spread. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. Supply appearing after an up move is often tested. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. Future: Following a test expect higher prices. 2011 172 . Be cautious if the test is followed by low volume up bars. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there.SOS 13: TEST NOTE: None. Background: The background is extremely important. Tests work best when there is strength in the background or following minor SOW in an uptrend. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Remember you need to look at the overall picture not just the individual bars. Failure to do so is a sign that the market is not yet ready to go up. COPYRIGHT TRADEGUIDER SYSTEMS. Be cautious if the test is followed by low volume up bars. upthrusts or high volume up bars closing in the middle especially on a narrow spread. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared.SOS 12: TEST NOTE: None.With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. Background: This indicator appears following a recent sign of weakness. Remember you need to look at the overall picture not just the individual bars. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Is this SOW minor? Remember tests work best when there is strength in the background or following minor SOW in an uptrend. Supply appearing after an up move is often tested. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. Future: Following a test expect higher prices. 2011 173 . Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. COPYRIGHT TRADEGUIDER SYSTEMS.SOS 11: BASIC TEST NOTE: None. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. Background: The background is extremely important. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. Supply appearing after an up move is often tested. 2011 174 . Tests work best when there is strength in the background or following minor SOW in an uptrend. High volume suggests demand overcame the supply. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Failure to do so is a sign that the market is not yet ready to go up. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). Be cautious if the test or shakeout is followed by low volume up bars. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. Future: Following a test expect higher prices. Remember you need to look at the overall picture not just the individual bars. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. If the spread is narrow it will have less impact. Sometimes this indicator appears as a shakeout. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. If volume is low then supply has dried up. upthrusts or high volume up bars closing in the middle especially on a narrow spread. A high volume test/shakeout may need to be re-‐ tested. which is a mark down but on a wide spread closing up near the high to shake out weak holders. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. Future: Following a test expect higher prices. Be cautious if the test is followed by low volume up bars. Supply appearing after an up move is often tested. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. Tests work best when there is strength in the background or following minor SOW in an uptrend. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. Failure to do so is a sign that the market is not yet ready to go up. Remember you need to look at the overall picture not just the individual bars. 2011 175 .SOS 9: TEST NOTE: None. Background: The background is extremely important. If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. upthrusts or high volume up bars closing in the middle especially on a narrow spread. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. COPYRIGHT TRADEGUIDER SYSTEMS. Future: Following a test expect higher prices. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). 2011 176 . Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. Supply appearing after an up move is often tested. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Tests work best when there is strength in the background or following minor SOW in an uptrend. Be cautious if the test is followed by low volume up bars. Remember you need to look at the overall picture not just the individual bars. upthrusts or high volume up bars closing in the middle especially on a narrow spread. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. COPYRIGHT TRADEGUIDER SYSTEMS.SOS 8: TEST NOTE: None. Background: The background is extremely important. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. Failure to do so is a sign that the market is not yet ready to go up. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. SOS 7: TEST NOTE: None. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. Failure to do so is a sign that the market is not yet ready to go up. Tests work best when there is strength in the background or following minor SOW in an uptrend. Remember you need to look at the overall picture not just the individual bars. If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Supply appearing after an up move is often tested. Be cautious if the test is followed by low volume up bars. upthrusts or high volume up bars closing in the middle especially on a narrow spread. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. Future: Following a test expect higher prices. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. 2011 177 . COPYRIGHT TRADEGUIDER SYSTEMS. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. Background: The background is extremely important. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. upthrusts or high volume up bars closing in the middle especially on a narrow spread. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. Background: The background is extremely important. 2011 178 . If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness.SOS 6: TEST NOTE: None. COPYRIGHT TRADEGUIDER SYSTEMS. Tests work best when there is strength in the background or following minor SOW in an uptrend. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. Be cautious if the test is followed by low volume up bars. If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. Failure to do so is a sign that the market is not yet ready to go up. Future: Following a test expect higher prices. Remember you need to look at the overall picture not just the individual bars. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. Supply appearing after an up move is often tested. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. The low volume suggests the supply has disappeared. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. Remember this indicator picks up demand coming in but there is still supply present. Bar Description: This should be a down bar on volume greater than the last few bars which can be gapped down often on bad news. upthrusts especially on high volume and no demand. However. COPYRIGHT TRADEGUIDER SYSTEMS. This they do with shakeouts and testing. Study the background carefully. If volume is low this becomes a test like bar and shows supply has disappeared. Remember the professionals have to buy on down bars and will also cover shorts which adds to the volume. Future: The next bar should be up to confirm the indicator. An ideal test is back into the area of the stopping volume. Panic selling from those traders on the wrong side of the market is absorbed by the market makers who now find prices attractive. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. If volume on the shakeout is high expect testing at a later date. This sends a message to weak holders to show their hand. The market may need to accumulate further before an up move can begin so be patient. The bar should be into fresh new low ground. Shakeouts are usually on a wide spread down closing near the highs. overall they are buying more than they are selling. 2011 179 .SOS 4: POTENTIAL STOPPING VOLUME NOTE: None. A market will not rally far until the professionals have checked to see if this supply has disappeared. Background: There should be a down move behind you. Weak holders will eventually panic and sell out regardless of the price offering the professionals the opportunity to acquire holdings at a good price. The professionals do this by selling small amounts of their holdings to push prices back down to the lows on bad news days. The bar should close well off the lows to show demand has absorbed the supply. Shakeouts are usually on a wide spread down closing near the highs. Remember the professionals have to buy on down bars and will also cover shorts which adds to the volume. The bar should close well off the lows to show demand has absorbed the supply. If volume is low this becomes a test like bar and shows supply has disappeared. This they do with shakeouts and testing. Future: The next bar should be up to confirm the indicator. A market will not rally far until the professionals have checked to see if this supply has disappeared. The bar should be into fresh new low ground. The market may need to accumulate further before an up move can begin so be patient. Weak holders will eventually panic and sell out regardless of the price offering the professionals the opportunity to acquire holdings at a good price. upthrusts especially on high volume and no demand. COPYRIGHT TRADEGUIDER SYSTEMS. An ideal test is back into the area of the stopping volume. 2011 180 .SOS 3: POTENTIAL STOPPING VOLUME NOTE: None. Bar Description: This should be a down bar on volume greater than the last few bars which can be gapped down often on bad news. Remember this indicator picks up demand coming in but there is still supply present. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. The professionals do this by selling small amounts of their holdings to push prices back down to the lows on bad news days. Study the background carefully. If volume on the shakeout is high expect testing at a later date. This sends a message to weak holders to show their hand. Panic selling from those traders on the wrong side of the market is absorbed by the market makers who now find prices attractive. overall they are buying more than they are selling. Background: There should be a down move behind you. The low volume suggests the supply has disappeared. However. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. upthrusts especially on high volume and no demand. Study the background carefully. This sends a message to weak holders to show their hand. An ideal test is back into the area of the stopping volume. The bar should close well off the lows to show demand has absorbed the supply. 2011 181 . The bar should be into fresh new low ground.SOS 1: POTENTIAL STOPPING VOLUME NOTE: None. Remember this indicator picks up demand coming in but there is still supply present. The market may need to accumulate further before an up move can begin so be patient. Weak holders will eventually panic and sell out regardless of the price offering the professionals the opportunity to acquire holdings at a good price. The low volume suggests the supply has disappeared. The professionals do this by selling small amounts of their holdings to push prices back down to the lows on bad news days. Future: The next bar should be up to confirm the indicator. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. Remember the professionals have to buy on down bars and will also cover shorts which adds to the volume. If volume on the shakeout is high expect testing at a later date. COPYRIGHT TRADEGUIDER SYSTEMS. However. Panic selling from those traders on the wrong side of the market is absorbed by the market makers who now find prices attractive. A market will not rally far until the professionals have checked to see if this supply has disappeared. Bar Description: This should be a down bar on volume greater than the last few bars which can be gapped down often on bad news. Shakeouts are usually on a wide spread down closing near the highs. Background: There should be a down move behind you. If volume is low this becomes a test like bar and shows supply has disappeared. This they do with shakeouts and testing. overall they are buying more than they are selling. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. 2011 182 . COPYRIGHT TRADEGUIDER SYSTEMS.